Loan rejections 'fuelled' by online decisions

11-Apr-2007

In news which may be of interest to first time home buyers looking to generate funds for purchases for their new home, new research suggests that fast online loan decisions may be responsible for the rise in credit refusals.

According to research by MoneyExpert.com, the number of loan applications - which may have included applications from first time home buyers - resulting in rejection over the last six months has risen to 1.39 million.

"These days we're all short of time and providers are keen to point out that they can offer you credit quickly," said Sean Gardner, chief executive of MoneyExpert.com.

"While saving time on your application may seem important, you have to weigh up what matters most - convenience or getting accepted," he added.

Indeed, out of a total of 89 possibilities, 31 loans applications are now structured to offer online decisions to applicants.

MoneyExpert.com offers comparisons on a number of products, including credit cards and mortgages.

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