Savvy consumers check their credit reports regularly, according to one expert.

James Jones, the consumer education manager at Experian, said that as loans are becoming increasingly difficult to get hold of, consumers need to take steps to maximise their chance of having an application accepted.

He added that lenders often rely on credit histories to help decide whether or not they accept somebodys application, which is why he advises that people should check their information is up-to-date.

Mr Jones added that lenders are also using credit histories to help determine what rates of interest they should charge people.

“Clever consumers are checking their credit reports to make sure that all the information is correct,” he concluded.

Recent research from CreditExpert.co.uk highlighted that many would-be borrowers are not confident that they would be given a loan.

Some 23 per cent of those polled said they would expect to be turned down for a loan of £1,000, while 42 per cent were unsure they could secure £10,000 worth of credit.