Poor credit affecting consumers’ ability to get affordable loans
May 3, 2011
Many people are struggling to get an affordable loans these days, with banks particularly cautious about who they lend to after the turbulence of the last couple of years in the financial markets. Over the past few years banks have become far more stringent about who they are prepared to lend to and it has become increasingly important for those thinking of applying for credit to ensure that they check their credit report.
According to one recent report the poor credit reports and scores that many people have are hampering their ability to be able to get finance at an affordable rate - or in some cases at all. Lenders are being more and more stringent about the credit score and history of those that they are prepared to lend to and with this in mind more and more people are now being turned down for loans or only managing to get loans with very high APRs.
Industry experts have advised anyone that is considering applying for credit of any sort to make sure that they check their credit report and score first. This can be done through one of the three credit reference agencies in the UK, which are Experian, Equifax, and Callcredit.
One industry official said: “Many people still fail to realise just how important their credit score and history is when applying for finance. If they apply without checking their credit they stand a far greater chance of being turned down or only being able to get a loan with a really high APR. If they check their credit first they can give themselves some time and improve their credit if they need to before applying for a loan.”
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