Responsible lender Creditspring supported borrowers with £127m in short-term credit during 2023 as financial pressures on households continue

Responsible lender, Creditspring, provided borrowers with £127m in short-term, affordable credit during 2023. Given the ongoing financial pressures on households – including increased energy costs – the amount of financial support provided by Creditspring to its members increased by 91% over 2023 compared to the previous year. This has taken total lending to members seeking short-term, affordable credit to almost £250m since launch. As reliance on credit grows, borrowers are increasingly seeking short-term, affordable credit options. Creditspring’s responsible approach to lending and stringent affordability measures grew the member base by 77% over 12 months – from 256,000 at the start of 2023 to over 450,000 today. In 2023 alone, Creditspring provided 366,000 loans to members, a 67% increase on the 2022 figure of 219,000. To provide members with enhanced financial support during the cost-of-living crisis, Creditspring recently launched its new Benefits Finder tool which identifies benefits that members may be eligible for but are yet to claim. Over 45,000 members have already used the Benefits Finder tool, unlocking £417m in unclaimed benefits. Over eight in ten (82%) members who completed the survey discovered they were eligible for benefits they hadn’t yet claimed, with an average entitlement of £895 per month. Throughout 2023, Creditspring announced a number of partnerships with other organisations to enhance support for its members. Via those partnerships, Creditspring provides its members great offers on essential spending, such as Daye and their innovative gynae products or even Trainline, which finds the cheapest travel fares for their customers. Recent partners include:

• Trainline - travel booking platform
• Wise – banking and money transfer provider
• Emma – money management app
• Daye - period care and gyno health start-up

Neil Kadagathur, CEO and Co-Founder at Creditspring, comments: “After being battered by the cost of living crisis for the last few years, household finances have reached – and in some cases, long passed – breaking point. “Rather than entering a new year full of hope, millions are already plagued with debt and face another 12 months of struggling to afford rising essential costs. Low-cost, short-term credit options can provide a lifeline for struggling households – over the last 12 months Creditspring has provided millions in vital affordable and responsible financial support and we expect that demand to continue into 2024. “For many people reliant on short-term credit options the alternative is to turn to high-cost or predatory lenders which often introduce hidden costs upon borrowers, encourage them to take on extortionate debts and unfortunately, push people into vicious debt spirals they are unable to escape from. These borrowers need a transparent and inclusive solution that improves access to affordable credit options and prevents debt spirals. At Creditspring, we’re committed to growing responsibly, whilst some predatory lenders accept all applications on the basis that they can leverage high costs on any missed payments, our model is aimed at providing a safer credit alternative which empowers members - with an average of 90,000 applications per month, clearly there is high borrower appetite for a responsible, short-term credit option.” In 2024, Creditspring will continue to innovate and introduce new products to market that will enhance support for increasing numbers of customers, to meet the demand for inclusive and affordable credit. Creditspring provides a new way to access credit safely. FCA-regulated, it is a credit subscription service that responsibly offers short-term, affordable credit to borrowers. Members pay a fixed membership fee every month to allow them to access two no-interest loans per year with clear repayment terms, capped costs and no hidden charges, late fees or confusing interest rates.