Eight Out Of Ten Loan Rejection Cases Are Working Full Time February 29th, 2012
It is a well known fact these days, that applying for a new personal loan or other form of credit is not as easy as it used to be, largely due to the fact that banks and other loan companies have placed much tighter lending criteria on their loan products, particularly when it comes to unsecured loans.
But a recent survey has suggested that many potential borrowers may be making the situation even harder of themselves, due to making several loan applications at the same time, or applying for an inappropriate loan amount or loan type.
The study, conducted by Freedom Finance via its own website, found that around 82 per cent of those individuals who had been rejected for a cheap loan deal were actually in full time employment, with a third of these having been in the same job for at least 10 years.
Furthermore, around 30 per cent of people who were rejected for a loan were earning more than £30,000 per year and 55 per cent were over the age of 40.
Freedom Finance has warned that making multiple loan applications can lower a person’s credit score, as each lender will carry out their own credit checks on an applicant, which will leave a mark on their record.
The survey also found that once a person had been rejected for a cheap loan deal from a bank or other lender, in many cases they turned to an expensive pay day loan as an alternative solution for their funding needs.
Nicola Winter of Freedom Finance said “Many consumers are being rejected for headline rates with other lenders and are not aware that there is an entire spectrum of loan products available to them that “soft search” sites are able to help them find without making the situation worse by damaging their credit rating.”