Borrowers 'need to keep an eye on their credit file'

By Sarah Engle, Thu 21 Aug 2008 - Published in Loans

People considering applying for a loan are being advised to check their credit file is up to date first.

GE Money Home Lending claims 458,000 loan and mortgage customers had to apply on at least four separate occasions before they secured credit during the last 18 months.

Overall 3.4 million applications for secured loans, unsecured loans, first mortgages and remortgages were rejected during the same period, it states.

In addition to checking their credit file, the group also advises borrowers to close any unused credit card accounts and to compare deals on a price comparison website in order to increase their chances of a successful application.

The company warns that failed applications can be recorded on credit records and could reduce their chances of being accepted for a loan in the future.

Gerry Bell from GE Money Home Lending said: "Consumers should try as far as possible to only apply to lenders where there is a good chance their application will be accepted."

Meanwhile, the Thrifty Scot claims obtaining a secured loan is easy if you have property which you can use as surety.

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