Loan survivor
18th June 2008
As rising costs hit consumers hard it is more important than ever for individual's to keep an eye on their credit rating and to shop around for the best deals on loans.
That is according to Sam Dunn who wrote in the Guardian last week that borrowing doesn't have to be expensive if consumers are prepared to do their homework.
Consumers with a good credit history can secure a personal loan rate of between 6.55 to seven per cent.
Ms Dunn advises consumers to keep their credit record healthy by paying off "as much existing credit card debt as possible before making a new application".
Loan applications can, Ms Dunn warns, be refused if consumers are not on the electoral roll so consumers should make sure they are registered.
Other tips include checking credit-worthiness online with a leading rating agency such as Equifax before applying for a loan and making sure a loan doesn't have early repayment fees.
Insuring your loan with the same provider that has leant the money can be very costly to consumers. Ms Dunn suggests that borrowers buy a policy from a standalone provider.