Recent research has shown that people who use comparison websites to apply for loans and other forms of credit too often may hurt their credit score.
Over the past year, 8.7 million people are thought to have used comparison websites to buy loans, credit cards, and insurance, among other things.
But research shows that the sites could cause people to hurt their credit score because many of the comparison or aggregator sites focus on price and not on the quality of service or whether a product is right for them.
So, consumers are led to apply for products that don't suit them, and they keep getting turned down.
Even though rejections don't show up on a person's credit record, "footprints" do show up when they try to get credit.
Experian's manager of consumer affairs said, "All the credit applications you've made in the last 12 months will be on your credit report.
"When a lender does a credit check, they will see those applications, and if there are a lot of them, it could make them think you need credit badly or that someone has been trying to get credit in your name without your permission," he said.
MoneyExpert.com, which commissioned the report, says on its website that over the past year, 2.8 million people have applied for 3.5 million financial products. About 6% of people who have tried to get credit cards, mortgages, or loans have been turned down.
MoneyExpert.com has started a credit profiling service that lets people narrow their search to only show credit providers whose lending standards match their credit rating.
The consumer's answers to questions about their past make up the profile, and no mark is made on the consumer's credit record.
Financial professionals are now asking all comparison sites to offer the same service. Customers should also be told that filling out too many applications could hurt their credit rating.
Websites should also improve what they have to offer by making fees and charges made by providers more clear. They also need to make sites about more than just price, like service and features.
No one has an automatic right to credit, but you can do something if you are turned down because of your credit score.
If you were turned down for credit because of a computerised credit score, you can ask the lender to look at the decision again.
Most High Street lenders will decide whether or not to lend you money based on what Experian and Equifax, the UK's two largest credit reference agencies, say about you.
These two companies put together credit histories from a variety of sources, such as:
- A record of how credit was paid
- Information held by the government
- Decisions from the County Court
- Electoral register
- Orders for bankruptcy and administration
- House repossessions
If you have had a lot of credit checks done, this will stand out on your record. Everything you do, from buying a freezer with no interest to getting a new credit card, will be recorded in your credit history.
But lenders will decide whether or not to give you credit based on their own criteria. If you are turned down for credit, you could check your credit history to make sure nothing was done wrong.
Ask the lender for the name and address of the agency that gave you the information within 28 days of the last time you talked to them about a loan. Then you can write to the agency and ask to see the information they have about you.
To do this, you will need to send a GBP2 fee, your full name, address, and postcode, as well as your addresses from the last six years.
If you are a sole proprietor or a partner in a business, give the name and address of your business in case your information is kept under that name. The agency then has seven days to respond.
If you think the lender's decision to deny you credit was unfair or wrong, and you have new information that might change the lender's mind, you can ask the lender how to get the decision looked at again.
You can ask to have your credit history changed if it is wrong or if it has information about people you no longer do business with.
You can also add notes that explain what happened during certain times. But you can't get information taken down just because it makes you feel bad.
Most national newspapers have ads for businesses that say they can fix your credit score. But these companies will charge a lot of money.
You can ask credit companies in writing for a copy of your file at any time. The Information Commissioner can give guidance leaflets to consumers with more information.
