Loan application problems and fears revealed

Monday, December 5, 2005

It has been revealed that one in six Britons applying for a loan does not get the rate they applied for, according to price comparison website moneysupermarket.com.

The loan research comes as the website launches a service to enable people to search for the best available loan for their credit profile called SmartSearch.

Also revealed through the loan investigation were a number of figures related to the loan companies and the loan application process, with 93 per cent of companies offering a typical loan rate, calculated on a price for risk basis.

"As our research shows, there's a lot of confusion and even embarrassment when applying for credit," said Stuart Glendinning, director of loans at moneysupermarket.com.

"Now any consumer can compare the market, no matter what their individual credit profile is."

The research revealed that 23 per cent of Britons have been put off applying for credit such as a personal loan through fear of being rejected due to their credit profile.

Somewhat surprisingly, 20 per cent of Britons did not realise that being rejected for credit can affect future applications.

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http://www.europinions-finance.co.uk/loans/loans/