Expert offers key post-Christmas loan information
Britons should not make too many application for loans, one financial expert has suggested.
Britons should steer clear of applying to a number of different companies for loans, according to a new report on Saturday (January 9th).As the new year continues apace, a large number of Britons will be looking into the possibility of securing a short-term financial boost after having an expensive festive period.
While consumers can explore loan information from a range of different providers, financial expert Jill Papworth explained that focusing on one application is the most prudent approach.
"It's not a good idea to make multiple loan applications, particularly if you have a poor credit history," she wrote in the Guardian.
"Each time you make an application, the lender will carry out a credit search, which will leave a mark on your credit record.
"Too many marks have a negative effect and can reduce your chances of making successful applications in the future."
Ms Papworth also explained that an increasing number of firms will no longer offer a typical APR with their deals, instead choosing to operate a 'personal pricing' strategy.
She also drew attention to a peer-to-peer lending site, Zopa.com, which offers the chance for consumers to lend to each other, therefore eradicating the need for banks.
Although the service is run strictly and is particularly picky over who it accepts as members, borrowers with a decent credit record can benefit hugely, according to Ms Papworth.
Last week, major building society Nationwide suggested that Britons should aim to secure loans from companies they are already familiar with, for example through their mortgage deals.
Written by Kevin Shield
© Copyright
Related Articles
- Loan information numbers reveal stamp duty's influence on mortgages - 16th February, 2010
A rush to secure mortgage deals before the end of the stamp duty holiday boosted lending in the last month of 2009, new loan information figures have revealed.
According to the Council of Mortgage Lenders (CML), the number of loans to first-time buyers was at its highest for two years... - Loan information firm Which? backs lenders in policy debate - 8th February, 2010
A company which offers loan information has claimed that the current application process is unfair to lenders, the Times reports.
It has been revealed that the details of millions of mortgages, bank accounts and credit cards taken out before the millennium do not appear on credit reports and, consequently, consumers with bad credit records are still able to acquire a loan... - Policy Exchange's loan information report tells parents to provide collateral for student loans - 11th February, 2010
A report regarding university funding has concluded that middle-class parents should be forced to put up their houses as collateral against their children's student loans.
Policy Exchange, the think-tank which released the loan information advice, has also suggested an interest-charging private loans scheme for wealthy students which would be repaid once they left higher education... - Loan information adviser issues warning to consumers - 2nd February, 2010
A loan information expert has advised consumers to complete loan applications by providing as much detail as possible, the Independent reports.
Kate Murphy of loan information website moneysupermarket.com, explained that lenders could decline a loan application on the strength of discrepancies in the paperwork... - Moneysupermarket.com's loan information figures reveal overdraft crisis - 25th February, 2010
New loan information figures have revealed that five million adults in Britain are permanently in their overdraft.
According to moneysupermarket.com, ten per cent of the British adult population are always in the red with their banks... - Western Credit Union offer best rates for car loan customers - 19th February, 2010
Approaching Westport Credit Union for a cheap loan for a vehicle may be the best bet for motorists looking for the most prudent financial deal, research has revealed.
The Irish Independent looked into the car loan rates of 50 credit unions and five leading banks as part of a study and discovered that going with the former provided drivers with the best deal... - Moneyfacts.co.uk's latest loan information shows personal rates have struck recent high - 1st February, 2010
An independent provider of loan information has revealed that personal loan rates have reached a nine-year high.
Moneyfacts.co.uk has claimed that uncertainty surrounding debt repayments has caused unsecured personal loans to witness some of the steepest increases in the lending market... - Daily Mail loan information numbers show expense of short-term deals - 10th February, 2010
An investigation by the Daily Mail has discovered that state-supported banks are charging more for short-term borrowing than back-street lenders and payday loan companies.
The newspaper's loan information figures revealed that a consumer who exceeds their overdraft for ten days prior to being paid could face fees and interest equivalent to more than 3,000 per cent a year... - Lending market experiences quiet 2009, according to BBA loan information figures - 23rd February, 2010
Demand for new personal loans receded throughout 2009 as a result of the economic downturn, new loan information figures have suggested.
Indeed, the majority of lenders found that consumers were focusing on making repayments rather than accruing more debts... - Loan information research reveals negative effect of money woes - 22nd February, 2010
Many Britons believe that personal finance problems have had a negative effect on their health and personal lives, new loan information figures have suggested.
According to Research conducted by GE Money Home Lending, 45 per cent of adults think their health and relationships suffered as a consequence of their poor financial situation...