We caught up with David Allan and loan comparison experts Lending Expert to offer us some simple tips and ideas to help us get the cheapest rates when borrowing money.

Many people are completely unaware of their credit score, or even that they have one, until they have an application for credit turned down. And finding out that the decision not to approve your application is largely based on a calculated number just adds insult to injury. But rather than ‘taking your business elsewhere’ and trying another lender – which can actually make matters worse – it’s worth taking the time to understand what credit scores are all about, and what can be done to improve them.

We’ve discussed peer-to-peer lending in depth on Money Bulldog in the past, looking at both the pros and cons of peer-to-peer lending for those looking to lend money and also for those people who are looking to find a loan.

Ever since the financial crisis of 2007, more and more emphasis has been placed on the importance of credit scores. A summation of much of your financial past and present, a credit file can play a major part in whether or not you are considered to be someone who borrows responsibly or someone who is seen as a financial risk.

The purpose of a credit report is to provide information to money-lending institutions about potential borrowers. The report helps the institution decide if the person who has made an application to borrow money in the form of a loan, mortgage or credit card would constitute a financial risk. Based on the findings, the lending institution can decide whether to approve the application or reject it.