Have you had difficulty sourcing a competitive loan? The credit crunch has made it harder for  consumers to get the right sort of loan, as application procedures become tougher and there are more hurdles to jump because lenders can pick and choose who they lend to.

One of the problems that borrowers can encounter is automated credit scoring. This is where you loan application is plugged into a computer and features of your credit history are run through a points system, which comes out with a total score on which the success of your application depends.

We’ve all become so used to easy credit that today’s climate can come as a shock. Reports of a massive increase in rejections by lenders can make getting that new credit card or mortgage deal feel like it might be a challenge. In fact, there’s plenty you can do to manage your credit rating – follow this simple guide to what really matters to lenders and the myths to ignore.

Being refused credit can be upsetting. However, there are steps you can take to make sure your credit record is in tip-top condition.

1. Make sure you are on the electoral roll

One of the main items of a credit check will be confirmation of your address. As well as a check on the voters’ register the check will examine your postcode, to show the sort of area you live in and how long you have been at the address. You will also be asked if you own the property, as home ownership makes you a better risk.

Have you been refused credit? It is not so long ago that the banks were handing out loans hand over fist, but now they have started to get worried about mounting bad debts and are beginning to rein in their lending.