Wed, 28 May 2025

Wed, 28 May 2025 Banks urged not to 'label' people with low credit scores

Tiffany Bramley was rejected for a loan to re-start her business after missing payments when her daughter died.

* A community lending charity founder, Karen Davies, says a low credit score should not prevent someone from getting a loan to start a business.
* Davies' charity, Purple Shoots, has supported nearly 1,000 new businesses with loans of up to £5,000 since its inception in 2013.
* The charity's approach is to look at the person and their business plan, rather than just their credit score.
* More than half of Purple Shoots' borrowers will be behind on their loan payments at some point, but the charity accommodates this by working with them.
* Mainstream lenders are criticized for labeling people and not considering their individual circumstances.
* UK Finance says the banking and finance industry is on course to provide over £60bn in finance for small businesses in the UK this year.
* A woman, Tiffany Bramley, who was turned down for a loan by her bank after her daughter died, said banks need to change their approach and consider the individual's circumstances.
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