TotallyMoney has announced the launch of an exclusive, industry-first feature, which provides credit card applicants with pre-approval, and up to four guarantees:
One in five UK adults were declined for credit last year*. So customers can avoid credit card rejection, TotallySure offers are pre-approved, meaning that subject to final checks, applicants will be accepted.
Regulation requires lenders to only provide 51% of credit applications with the Representative APR shown — meaning millions of customers could be downsold onto a more expensive product. TotallySure offers can come with guaranteed APRs, credit limits, balance transfer offer durations, and purchase offer durations — so customers get the exact offer they applied for.
In addition to improving transparency, and driving better customer outcomes, TotallySure can help lenders find more suitable borrowers, reduce costs, and improve trust and brand loyalty.
TotallySure is now live. This brand new feature means customers can apply with confidence and be totally sure they’ll get the exact offer advertised.
Advertised credit offers aren’t what they might seem
In just 12 months, more than 9 million adults had their credit applications rejected — and one in 20 were declined three times or more*. Each application can leave a hard search on a customer's credit file — and multiple in a short space of time can act as a red flag to lenders, potentially leading to continued rejection and worsening offers.
Meanwhile, regulation means banks only need to give 51% of customers the advertised Representative APR, meaning almost half could receive something very different to what they applied for. However, only one in five people (19%) think that lenders make this clear†.
To investigate the extent of downselling, TotallyMoney commissioned Moneycomms‡ to conduct research into 18 of the UK’s biggest balance transfer credit card providers and found:
- A third (6/18) don’t provide pre-application product summary boxes
- Half (9/18) don’t show the full range of APRs the customer could be downsold on
- Barclaycard’s headline balance transfer deal advertises an APR of 24.9%, and an offer duration of 29 months. However, customers could end up with 31.9% and 14 months.
- Meanwhile, HSBC’s leading offer advertises 24.9% APR, and a balance transfer period of 27 months — but applicants could be given 29.9% APR and 14 months.
Additional TotallyMoney research found that just 40% of customers are aware they might receive a different APR to the one advertised, and less than half realised they could be given a different credit limit to the one they applied for†.
To give customers confidence in being accepted for a product, and so they know they’ll get exactly what they’re applying for — TotallyMoney launched TotallySure.
An industry first that puts customers first
TotallySure is a market-leading feature, and the first to show customers if they’ll be pre-approved, and guaranteed to receive the advertised APR, credit limit, balance transfer offer duration, and purchase offer duration.
Pre-approval: Applying for credit can leave a hard search on your credit file — and too many can have a negative impact on your ability to borrow. Pre-approval means that subject to final checks, applicants will be accepted — helping reduce hard searches and improve certainty.
Guaranteed APR: Knowing how much a lender will charge you to borrow is essential to managing your money. And while ‘representative APRs' mean almost half of customers could receive a worse offer, TotallySure guarantees the interest rate, and the cost to borrow.
Guaranteed credit limit: If you’re taking out a card to consolidate debt, or make a purchase, knowing how much money you’ll have access to is essential — and is why TotallySure offers come with guaranteed credit limits.
Guaranteed balance transfer offer duration: Balance transfer headline offers lead on the 0% duration — but downselling means these can often be cut short. TotallySure offers mean customers get what’s advertised, and nothing less.
Guaranteed 0% purchase duration: When spreading the cost of a big-ticket purchase, it’s essential you know how long the interest-free period will last, and being downsold could have a considerable impact on your finances. Which is why TotallySure removes any surprises and locks in the purchase duration.
TotallySure sets a new standard of care, improving transparency, and creating better customer outcomes. This new feature also benefits lenders by driving more eligible customers and reducing the costs of failed applications, while eliminating uncertainty and improving trust.
Alastair Douglas, CEO of TotallyMoney comments: “Now more than ever, people need to be able to take total control of their finances — and a big part of that is knowing where they stand when applying for credit. That includes knowing the level of interest you’ll be paying, the credit limit you’ll receive, and how long a 0% interest-free period you’ll get.
“But for too long, regulation has allowed the banks to treat credit card applications as if they were a lottery — and to make things even more concerning, many people aren’t even aware they’re gambling with their finances. Lenders need to be upfront with customers about how products and services work, while ensuring they’re easily comparable. Key to that is by making sure that what people see is what they’ll get.
“Which is why we launched TotallySure. And to help raise industry standards and improve transparency, TotallySure offers are now recognised by our proprietary product ranking algorithm — Match Factor. As such, cards with the TotallySure badge will receive an upvote on our tables, making them more prominent to our customers, while helping lenders find more suitable borrowers, reduce costs, and improve trust and brand loyalty."
