The customer's own credit-worthiness is attaining more importance among loans lenders.
Searching the market for the best personal loan deal in tough financial conditions has been recommended by financial information group Defaqto.
The new report highlighted the need for the consumer to have a good credit rating in order to take advantage of best-buy deals. The onset of the financial crisis, which has tightened up credit criteria among lenders up and down the UK, was also seen as a major reason behind the increased importance of the ratings.
This is because many financial firms are themselves feeling the squeeze in the downturn - and are therefore only interested in lending to the most credit-worthy companies.
Credit ratings can be improved by a consumer always paying his or her debt repayments in full and on time. A positive credit record is built up over time as the borrower shows responsibility in this way.
Defaqto pointed out that highly beneficial rates were still available on the market for highly-rated customers. A £5,000 personal loan repaid over three years can be purchased on an APR of just 7.9 percent from supermarkets Tesco and Sainsbury's - although these products are only available to existing customers.
David Black, principal consultant of Banking at Defaqto, said: "The best loan deals are restricted to those with good credit ratings. Personal pricing or 'risk based pricing' is taking a real hold in the unsecured market so, as an individual's credit worthiness deteriorates it becomes increasingly difficult and, when available, more expensive to borrow."
