Individuals have been urged to take care over the effect on their credit rating when searching for loans.

High Street bank TSB said some loan providers make a "hard mark" on credit files when someone asks for a loan price or quote. Personalised pricing means that, in effect, these people are seen to be applying for a loan. A series of these marks on somebody's file may be regarded as a danger sign by other lenders. They might consider the person to be desperate for a loan, so more of a risk to lend to. TSB chief executive Paul Pester said: "We estimate that consumers are losing out by as much as £400m each year, which is going straight into the pockets of aggressive loans providers. It is time the industry comes clean on these costly underhand tactics."

In a report, TSB argued: "Personal loans providers must agree never to perform a hard credit check until the customer chooses to actually purchase a loan in full knowledge of the price being offered. "The practice whereby some providers issue a hard credit check in order to issue a customer with a personalised price needs to end. There is no reason to punish customers in this way.....Read more here