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    One positive outcome of the credit crunch is that it has had a positive effect on the credit rating of many Britons, a new report has claimed.

    A study by financial comparison website moneysupermarket.com suggested that people are becoming "smarter" in their loan applications and applying only for borrowing they are likely to secure.

    Each rejected application for borrowing damages a person’s credit rating and makes it less likely they will be approved for the next financial product they apply for.

    Tim Moss, head of loans and debt at moneysupermarket.com, suggested the new technique will be good for both lenders and borrowers.

    "The traditional scattergun approach of Brits applying for credit is being replaced with a lot more surgical precision now," he commented.

    Recently, moneysupermarket.com warned that during 2007, 5.5 million Britons put their credit rating at risk by missing payments for bills or loans.

    It urged consumers to remember that credit ratings remain with them for a considerable period.

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