Loan rejection rates ‘on the increase’

Much of the rise in the number of loan rejections, which can potentially have a negative impact on an individual’s credit rating, is being put down to the number of applications being made without appropriate advice via the internet, MoneyExpert suggests.

And many of the people turned down for a loan could find themselves in need of debt advice or facing significant debt management concerns.

MoneyExpert chief executive Sean Gardner said: “If you’re regularly getting refused credit take your time to research your options before reapplying – there are many free tools online which can help you.

“Alternatively, you can contact your local Citizens Advice bureau if your situation is acute,” he added.

It was revealed by MoneyExpert in February that over the past three years more than six million Brits decided to take out a debt consolidation loan in an effort to resolve their financial problems.