Advertised rates are a con - HSBC
Options
Hye,
I applied for a loan from HSBC last week and they advertise a typical APR of 3.3%. First they turned me down (I was very surprised as I have a high credit score and no missed payments on anything), Then I got another email saying they would give me the loan but at a different rate. Came through in the post today and it has leaped to 8.4%.
I consider myself to be a good risk so I think it was a rate advertised to draw me in then the rate over doubles.
I will not be pursuing the loan with them at that rate and my new car can wait a bit longer. Anyone else had similar experiences?
I know they take every case individually but it seems a bit of a con to me.
I applied for a loan from HSBC last week and they advertise a typical APR of 3.3%. First they turned me down (I was very surprised as I have a high credit score and no missed payments on anything), Then I got another email saying they would give me the loan but at a different rate. Came through in the post today and it has leaped to 8.4%.
I consider myself to be a good risk so I think it was a rate advertised to draw me in then the rate over doubles.
I will not be pursuing the loan with them at that rate and my new car can wait a bit longer. Anyone else had similar experiences?
I know they take every case individually but it seems a bit of a con to me.
0
Comments
-
I consider myself to be a good risk
Sounds like they disagree and seeing as they are the one doing the lending they get the final call.
Typical rates quoted have to be given to 51% of successful applicants, you made the other 49%"We act as though comfort and luxury are the chief requirements of life, when all that we need to make us happy is something to be enthusiastic about” – Albert Einstein0 -
No, HSBC advertise loans with a representative APR of 3.3%, not a typical APR. The representative rate has to be offered to 51% of successful applicants, you are one of the 49%. The meaning of "representative APR" has been discussed numerous times on this board before.
Who says you have a high credit score? Have HSBC told you that they rate you highly? Is the "high credit score" from one of the credit reference agencies, none of whom lend money and generate credit scores that no lenders uses?0 -
Had the same experience with HSBC but as above really...
The annoying thing for me was the fact I bank with them and having got a quote online I was told 5.9%, yet when I applied properly it went up to 16.9% and an option to accept/decline.
I get that the advertised rate isn't necessarily what you'll get but when you bank with them and already have a loan with them, to quote 5.9% and then for it to leap to 16.9% seems a bit off (I did it through online banking).August 2019: £28.8k
November 2020: £0 (0% interest)
My debt free diary: https://forums.moneysavingexpert.com/discussion/comment/77330320#Comment_77330320
0 -
Well obviously you'd be a better judge of your own risk profile than a lender advancing £billions in unsecured credit each year.0
-
I get that the advertised rate isn't necessarily what you'll get but when you bank with them and already have a loan with them, to quote 5.9% and then for it to leap to 16.9% seems a bit off (I did it through online banking).
it was probably affordability then - you already have one loan and now you want more. That would ring some warning bells rather than make you a good betI’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
& Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
All views are my own and not the official line of MoneySavingExpert.0 -
I was very surprised as I have a high credit score and no missed payments on anything
Means absolutely diddly squat. That's not how a lender credit profiles you.I know they take every case individually but it seems a bit of a con to me.
Until you make a formal application they don't have all the data to hand. They need your permission to access it. Once they have the data then they can appraise you fully.
Like a job interview. The offer is subject to references.0 -
But it was consolidation, a chunk of it went on the other HSBC loan as soon as I accepted (I couldn't avoid paying they took it automatically), it seemed a bit sneaky to me, it wasn't the advertised rate, it was a rate based on my circumstances and if it hadn't enticed me with a lower rate than I was currently paying I wouldn't have bothered applying.it was probably affordability then - you already have one loan and now you want more. That would ring some warning bells rather than make you a good bet
Anyway...live and learn...August 2019: £28.8k
November 2020: £0 (0% interest)
My debt free diary: https://forums.moneysavingexpert.com/discussion/comment/77330320#Comment_77330320
0 -
Consolidation loans never get a good rate.0
-
Well, HSBC, the criminal bank, what more can you expect? They are proven money launderers and sharp practice obviously pervades their entire operation. Yes, clearly a ploy to hook people. Some will take the bait, I'm glad you didn't. They'll have worked out the likely profitability of their sneaky approach and come to the conclusion that it's worth doing.0
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608K Mortgages, Homes & Bills
- 173.1K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards