(1888PressRelease)
April 19, 2007 - MoneyExpert.com, an independent comparison site, revealed that one third of personal loans can now be approved online. However, this also means that the number of rejected applications is on a rise, as many people apply for loans over the internet without seeking proper advice or checking their credit status.
Research shows that 1.39 million applications have been rejected in the last six months – making a turn down rate of 320 applications per hour.
Roughly 31 of the 89 possible loans on the market are available with an online decision.
MoneyExpert.com warns that while money can be borrowed in minutes, applications can be rejected just as quickly – something that could affect the applicant’s credit rating.
Around 31 of the 89 possible loans on the market are available with an online decision. MoneyExpert.com warns that while money can be borrowed in a matter of minutes, lenders can also reject applications just as quickly, something which could affect applicants' credit rating.
Sean Gardner – Chief Executive of MoneyExpert.com – said, “Loan providers are getting tough so applicants should not assume that, just because the loan is available online, acceptance is automatic. The same rigorous rules apply however you request credit and if you are rejected too often it will be your credit rating that suffers.”
To do away with the probability of being rejected – their advice to loan seekers is that they must make an informed choice by taking advantage of the online credit profiling tools to find out the best loan product.
Sean Gardner further said, “The worry is that people might be tempted to apply for more than one loan at a time as they know they will get their responses quickly on the internet. With providers refusing credit to 320 people every hour, there is clearly a need for funds out there from people with less than perfect credit records”.
He pointed out that advice is also available from Citizens Advice Bureau – a registered charity for legal and financial advice. Finally, applicants must decide what is more important – saving time or getting accepted – before applying for loans over the internet.
Talking about the benefits of secured personal loans, an industry expert said that they may be a competitive alternative to unsecured credit. And, that good research was especially important for those who were regularly refused credit.
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