Thursday 27th December 2007
January is a traditional time for there to be a noticeable increase in loan applications, it has been revealed.
Equifax has reported that more loan applications tend to be received in January than at other times of the year as people begin to pay off the debts that they have mounted up over the Christmas period.
"There's a common trend that people do borrow short-term over Christmas and try to consolidate that in the new year, so there's always an increase in loan applications and mortgage applications," Neil Munroe, external affairs director for Equifax, explained.
However, this year could see a change in the number of people whose loan applications are accepted, as the global credit crunch strikes and lenders tighten their lending criteria.
"The issue is whether those people who relied on that capability will find it more difficult to get credit," Mr Munroe said.
He concluded: "At the moment the general view is that if they are in the marginal area, so if their credit score is only marginally acceptable for lenders, they may find it more difficult."
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Loans
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