With the ongoing credit crunch affecting the financial markets, many lenders are now extremely selective about who they lend money to.
With uncertainties for both banks and customers alike, finding an affordable deal on loans and mortgages can be a difficult process.
So what can you do to ensure that you're getting a deal that right for you when researching ?
One of the main pieces of advice is to ensure that your credit record is clean and up-to-date, and there are a number of agencies that offer the chance to obtain a copy of your credit record for a small fee.
It's worth keeping an eye on your credit rating and making changes to ensure that it remains clean, which can help during the process of applying for personal and .
By checking your records regularly you can also help yourself to identify any fraudulent activity that might be taking place on your account that you may be unaware of.
And with levels of online fraud on the increase it can help put your mind at ease as well as helping you keep track of any payments on and credit cards that you may already have.
By doing a little background work using your credit record you can help predict how successful you will be in future applications. Lenders will usually look for those who can handle their credit well, so keeping a healthy credit score can be beneficial for both lenders and customers.
Take some time to compare different loan schemes and draw up a budget for yourself in order to help analyse how much you can set aside each month, this will help you determine how much you can afford to borrow and over what length of time.
Don't be tempted to apply for several loans at once, as this could reflect badly on your credit score in future, and remember that factors such as missed payments, CCJs and bankruptcies will remain on your record for up to 7 years.
It is also important to inform lenders of any special circumstances - such as serious illness - so that changes can be made to your policies in order to make it a little more manageable for you.
If you are having trouble with keeping your credit score healthy, it may be worth seeking advice on debt management in order to help yourself keep your finances in check.
But be wary of whom you seek advice from, - particularly those who promise to 'repair and consolidate' any debts you might have, it may be better for you to speak to a debt counselling service.
