Almost 1.4 million applications for loans have been turned down in the last six months, a new survey claims.
Price comparison website MoneyExpert says that quick online decisions are fuelling the high number of rejections.
But it warns that Britons are risking poor credit ratings by making multiple applications on the internet, with 31 out of 89 loan firms quizzed now giving approvals or rejections online.
"These days we're all short of time and providers are keen to point out that they can offer you credit quickly. While saving time on your application may seem important, you have to weigh up what matters most - convenience or getting accepted," explained MoneyExpert's Sean Gardner.
"Loan providers are getting tough so applicants shouldn't assume that, just because the loan is available online, acceptance is automatic. The same rigorous rules apply however you request credit and if you're rejected too often it'll be your credit rating that suffers."
Citing research that shows four out of five loans in Britain are now available through an initial internet enquiry Mr Gardner goes on to say there is a "worry" that people are falling into the trap of applying for more than one loan at a time simply because they know responses are quick online.
"There are alternatives to unsecured loans," he added. "For example homeowner loans are often just as competitive as unsecured rates. If you're regularly getting refused credit take your time to research your options before reapplying - there are many free tools online which can help you.
"Alternatively, you can contact your local Citizens Advice Bureau if your situation is acute."
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