Risk based pricing for Co-op Bank personal loans
The Co-operative Bank has announced that, from this week on, it will be implementing personal loan pricing that better reflects the creditworthiness of the loan applicant.
Different interest rates will be offered to different applicants based on their creditworthiness – which is assessed through factors like a consumer’s credit bureau score, adverse credit history, employment status and income.
The rates on offer will range from 9.5% for an A+ credit score to 19.5% for a D score, but it is likely that a rate of 13.95% will apply to the majority of applicants.
However, discounts are available for main bank customers (-1%) and for those with particular insurance policies (0.50%).
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