Brits 'getting smarter' with loan applications - 16/01/2008

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People looking for loans and credit cards during the credit crunch are getting smarter about the application process, moneysupermarket.com has indicated.

According to Tim Moss, head of loans and debt at the price comparison website, British consumers have tossed aside the "traditional scattergun" approach to applying for credit products in favour of "more surgical precision".

He explained that as there is no point applying for loans and credit cards that consumers don't qualify for, Brits are streamlining the application process.

"Each time you have an application rejected, it has a negative effect on your credit rating and reduces your chances of being approved for the next product you apply for, or being offered a higher rate," Mr Moss said.

"Brits are at last realising that applying for the most appropriate card or loan in the first place is the best way to go."

In related news, Moneyfacts.co.uk reported yesterday that interest rates on personal loans have fallen by as much as three per cent since the beginning of the year.

The independent personal finance website suggested that the reduced rates could be a marketing drive to appeal to consumers looking for a post-Christmas debt consolidation loan.

© Adfero

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