Coles has just recently advised of a new financial product, Personal Loans from a starting point of $5,000 dollars. This move is obviously an extension of their Credit providing facilities eg The Coles Mastercard which they are heavily advertising on TV at the moment.
As a “sweetener” they advise if you are a Flybuys member they will give a better interest rate compared to if you aren’t. With an ability to redraw credit on the loan it can turn from a loan that was for some set period eg 3 years (they offer three loan terms) to one that has no end date.
The message I received said you could see what you might get and the quick process would not affect your credit rating (this could be 2 separate enquiries each one requiring a bit more data). To go further then requires a full credit check and really amounts to an application. It also tries to sell the personal loans as a means of keeping “control of your finances”, I feel this is a bit of a stretch on the idea of control.
I have not been happy with the two big Supermarket chains and their delving into financial products but the pace seems to be growing particularly with Coles at the moment and I wonder how long it will be before Woolworths responds in a similar way.
I am concerned on a number of issues but the unending loan is one of my grave, if not my gravest, concerns.