Finance Roll

Ignore the current headlines stating that the credit crunch is abating; the truth of the matter is that banks are still as cagey as ever. Although mortgages are getting back to normal for those with huge amounts of equity, the difficulties are trundling on for the rest of us. This state of affairs was reflected in a recent survey by GE Money which showed that 5% of people have been rejected for a mortgage or loan since January 2007 (this figure would be even higher if Credit card applications were included). 13% of people have made four applications before being accepted! The banks have created an uneven playing field. Perfect clients are being fast tracked whilst everyone else is having their applications scrutinised more than ever. You will be in the "everyone else" group if any of these facts apply to your situation:

* You are under 25.
* You are over 60.
* You have been in your current job for less than 18 months.
* You are not on the electoral roll.
* You are not British.
* You don't have a passport.
* You have had more than one address in the last few years.
* Your wages comprise a larger than average amount of commission or overtime.
* Your job is temporary or you work for through an agency.
* You have recently got married and changed your name.
* You have a small deposit (or no deposit).
* You have been shredding your bank statements.
* You are buying a property of non-standard construction.
* You are in a low paying job.
* You have not had credit in the past.

You'll notice in the list above that I don't even mention your credit report and credit score. That is a whole new kettle of fish!

In order to make sure you will be able to obtain credit when you need it, you have to start thinking like a bank. Would you give a loan to a workmate who is always late paying their bills, flits from job to job and house to house, hasn't bothered to get himself a passport, doesn't know how much he has in the bank, and scrimps along on minimum wage? No? Well why expect the bank too? They are a business after all - not a charity.