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Online applications 'fuelling loan rejections'

The number of personal loan applications that are rejected is being fuelled by a greater proportion of people applying online, according to new figures.

Research by MoneyExpert.com found that many consumers are relying on online forms without seeking professional advice or checking their credit status.

The site stated that this has contributed to the overall figure of 1.39 million people having their loan applications turned down in the last six months.

Sean Gardner, chief executive of MoneyExpert.com, said: "These days we're all short of time and providers are keen to point out that they can offer you credit quickly.

"While saving time on your application may seem important, you have to weigh up what matters most - convenience or getting accepted.

Mr Gardner added that people should not assume that because the loan is available online, they will be accepted automatically.

He also warned that if people request credit and are rejected too often then their credit rating could suffer as a result.

This follows a recent warning from Alliance & Leicester that consumers could be paying up to £285 million too much in interest by choosing uncompetitive loans.

Click here to see how much you could borrow with a Lombard Direct personal loan.

11/04/2007 15:40:01

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