Electoral Roll for Improved APR

Scotty1234 · 17 October 2017 at 2:35PM

Hi guys,

I have just passed my driving test at the ripe old age of 25.

I want to combine a personal loan with cash to buy a car.

I used moneysavingexpert loan comparison tool to search for the best possible deal and the top result was RBS, will a very reasonable 3.4%. It is also my personal bank. However when processed my application, the rate I was actually offered jumped to 18%.

Now I understand that this is normal for 90% of applicants to receive a different APR than advertised, however I am hoping there is 2 major reasons for such a high rate.

1) I am not on the electoral roll at my current address which is the one I am using when applying for a loan- I have registered and been accepted & will be added on 1st December 2017.

2) I have just been accepted for the HSBC Dual Credit card, which I have transferred a balance from a Vanquis Credit card, last night. Possibly as I had 2 credit cards in my name, live at the same time, abiet only 1 had a debt on it, this was affecting my score too?

I think that my current credit rating is marked at 'Fair', do you think my score will improve after the 1st December when I am added to the electoral roll at my current address, and by that time I will only have 1 credit card in my name too. That card only has 1.2k on it FYI.

I also have a student bank account still open, with its overdraft fully to the max - 1.4k. I am in a position where I can afford to pay this off, probably should have done it long before now anyway, but if I was to do this also would it help?

Just looking for any advice based on the above points really. Appreciate anything in advance guys cheers :T

[Deleted User] · 17 October 2017 at 2:48PM

Being on the ER will affect acceptance, rather than rate.

Ignore your credit score (it's meaningless) and focus on making your credit file as good as it can be. Get on the ER, don't miss payments, clear credit cards in full each month, get out of your overdraft.

Keep both cards open, use regularly and clear in full, once you've paid off the debt on the one.

Candyapple · 17 October 2017 at 3:19PM

Don't forget that just because you will be added to the register in December, doesn't mean it will reflect in your credit files instantly - it could take another 2-3 months, taking you up to circa March 2018.

The lowest rates of APR are usually reserved for those with impeccable credit histories. You having a Vanquis card suggests you have a poor credit history.

Is your student account/overdraft with RBS? If yes, don't expect to get a loan with them anytime soon.

If you want a loan you will need to show that you are employed and not a student.

Rather than relying on a loan, why don't you get a job if you don't already have one and then save as much as you can and buy a car that you can afford. I don't think you'll even be eligible for a loan anyway so you may have to do just that.

Scotty1234 · 17 October 2017 at 3:28PM

Thanks for the replies.

I had a Vanquis card as I had poor credit history when leaving university. (2014) Never had any problems with it and as I said, have balance transferred to a new card with 0% interest for 30 months.

I am now a self employed contractor in Oil and Gas industry earning a good wage.

What I am asking is if I pay off that student overdraft in one go, will this be looked upon favourably by RBS when deciding APR.

If I went in to speak to RBS in person would that help or is it one of those 'computer system says no' situations?

[Deleted User] · 17 October 2017 at 3:30PM

Carrying less debt will make you look lower risk.

Branch staff don't have any say in lending criteria.

Candyapple · 18 October 2017 at 10:11AM

Scotty1234 wrote: »

Thanks for the replies.

I had a Vanquis card as I had poor credit history when leaving university. (2014) Never had any problems with it and as I said, have balance transferred to a new card with 0% interest for 30 months.

I am now a self employed contractor in Oil and Gas industry earning a good wage.

What I am asking is if I pay off that student overdraft in one go, will this be looked upon favourably by RBS when deciding APR.

If I went in to speak to RBS in person would that help or is it one of those 'computer system says no' situations?

If you are no longer a student and left uni 3 years ago, then you need to change your bank account from a student one to an ordinary current account. Reason being, lots of banks will not lend anything to anyone with 'student' status.

If you cleared your overdraft in one go no it will not make any difference to the APR you get.

As zx stated, doesn't matter if you go into a branch to make the application - all you'll be doing is wasting your time visiting the bank in the first place and getting them to type your details onto the application when you can quite easily do this yourself at home. You'll still be credit checked and regardless of what rate you get, the bank staff won't be able to reduce it.

Your eligibility is not solely based on one factor; any combination of the following factors might be taken into consideration:

- amount of existing debt
- amount of existing available credit
- history of settled accounts
- history of incurring defaults
- number of recent applications for credit
- age
- whether single, married, widowed, separated or divorced
- whether home-owner, tenant or living with parents
- whether you're on the electoral register
- current employment status
- length of time with current employer
- salary

This is by no means an exhaustive list and how each credit-provider assesses you is different; some companies may not consider many of these factors, some may consider even more. Certain factors may not carry any weight and some might dictate the decision-making process completely - you'll never know.

There is no one rule and the only way you'll know is if you apply and are accepted; ultimately, it's up to each company whether they want to give you a loan or not and on what terms. They have no obligation to lend to anyone nor explain or justify their lending criteria.

What other results did the loan eligibility checker show?

Electoral Roll for Improved APR

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