Consumers 'should clean up credit ratings' - 17/12/2007

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Gaining a good credit rating could be essential for anyone looking to secure a good loan deal next year, according to one expert.

Tim Moss from moneysupermarket.com is convinced that lenders around the country are likely to tighten their loan application criteria and could exclude access to these kinds of deals to people with a poor credit history.

Credit ratings are identified as being among the key issues likely to be faced by Britons in the coming 12 months as the state of the economy in 2008 takes hold of consumer finances.

In fact, the financial comparison firm suggests that when it comes to securing a decent borrowing deal, having a good credit rating could be a "consumer's best friend" in 2008.

"The credit crunch undoubtedly means good value unsecured personal loans will be difficult to come by for a lot more people," said Mr Moss.

"Even small missed payments such as a couple of quid on a mobile phone bill will leave a black mark on your record that will make it much harder to borrow at good rates, if at all."

A report from online payment processor PayPal last week indicated that UK consumers have borrowed close to £26 billion from their friends and families over the course of the past 12 months.

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