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01 November 2005
Online applications for financial products can harm customers' credit ratings as people request services whose criteria they do not meet, according to research.
According to MoneyExpert.com, 52,000 internet applications for services such as mortgages, loans and credit cards are rejected each month often due to people going for products that simply aren't suited to them or their credit rating.
The website warned customers not to immediately apply for the flashiest, most appealing-looking rate, noting that the deals with big headlines are often intended for wealthier people or those with a high credit rating.
Sean Gardner, MoneyExpert.com chief executive, said that people should be vigilant and mindful that their credit rating could be affected if they do not think carefully about what they require from an online financial product.
He said: "When you consider many financial institutions offer best rates only to customers who meet certain criteria, which much of the time includes having a high credit score, it is not surprising many people are turned down.
"Some are offered products on a higher rate, but others are declined completely this damages their credit rating, making it harder to take out products in the immediate future."
The website also advised that customers consider whether an alternative product for example, a loan instead of a credit card or vice versa would prove less costly for them in their circumstances.
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