Research conducted by Moneysupermarket found that of 3,000 consumers applying for a loan, some 40 per cent are likely to have their application declined within two days.

Of this pool of people, 25 per cent had their loan request granted, but 35 per cent were left waiting several days for a decision.

Managing director of the site Stuart Glendinning warned that not only do those who are accepted for a loan often not receive the loan rate they applied for, but a rejection can also harm an individual’s credit history.

He said: “Most customers will be shocked to discover how high the immediate decline rate is. As if this isn’t bad enough consumers then face a lottery of whether or not they will be offered the headline APR.

“Our research shows many customers are wasting their time applying for loans with the cheapest rates.”

He warned that should consumers then turn to an alternative provider they may find they can only secure a higher rate loan or are rejected altogether.

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