Bad credit loans: Customers should shop around for deals

Most people looking for loans, including bad credit loans, do not shop around for the best deals, according to new research.

The study, released by Sainsbury's Finance, showed that more than half of people seeking credit in the last five years have gone directly to their current account provider.

A third of customers (33 per cent) said that they had obtained just one quote before they chose their product, while over 65s were found to be the least likely group to seek out the best arrangement possible.

Steven Baillie, head of loans at Sainsbury's Finance, said: "Given the increase in the number and popularity of price comparison websites it's surprising that so many people still go straight to their high street bank without comparing deals. There are many deals to be had but you [must] shop around a little."

Last week, Phil Perry from Ark Financial Planning said that consumers, including bad credit credit card customers, should have some form of protection in the event of being unable to make their repayments.