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    • benevs
    • By benevs 4th Oct 16, 4:28 PM
    • 25Posts
    • 3Thanks
    benevs
    Personal Loan for a new car
    • #1
    • 4th Oct 16, 4:28 PM
    Personal Loan for a new car 4th Oct 16 at 4:28 PM
    Hi all

    After some advice please.

    I'm looking to buy a new car and I wanted to take out a new personal loan from my bank at 3.5% for £10k over 5 years.

    So I applied online expecting to get the 3.5% APR only for a few days later when the documents came though to only been approved at 9.9%. Triple the amount!

    I'm 28 and I earn a good salary (27k). And I still live with my parents so i don't really have any outgoing bills apart from my bike, phone and a little bit of rent. My current bills are probably only a quarter of my salary. Also my current car loan is on there as well. With the new car loan expected to take its place, just costing a few quid more. I also checked my credit score and its at 997 out of 999. I've never missed a payment on anything.

    So I phoned the bank to find out why and all I got was that they couldn't tell me why I only got approved at 9,9%. The only reason I can think of is because of my age and I don't own a house?

    As I said as far as i'm concerned my credit rating has nothing wrong with it and I really can't think of a reason why I wouldn't get the 3.5% APR

    So my question is is there any point in applying to anybody else if my own bank will only give me 9.9%? Can I appeal against it or something or put a complaint in or is it worth me threatening to move my current and savings account to another bank in hope they will then give me a better rate?

    Thanks

    Ben
Page 1
    • bengalknights
    • By bengalknights 4th Oct 16, 4:40 PM
    • 3,670 Posts
    • 1,319 Thanks
    bengalknights
    • #2
    • 4th Oct 16, 4:40 PM
    • #2
    • 4th Oct 16, 4:40 PM
    Personally i would advise against a loan for the car and instead maybe looks towards dealers 0% deals (if your up for PCP deals)
    • zx81
    • By zx81 4th Oct 16, 4:48 PM
    • 9,400 Posts
    • 9,237 Thanks
    zx81
    • #3
    • 4th Oct 16, 4:48 PM
    • #3
    • 4th Oct 16, 4:48 PM
    I'd guess the existing loan and perhaps limited credit history are the issue. It's nice of Experian to give you a high score but unfortunately they don't give loans.

    You could try elsewhere but you may be limited in options.

    Only threaten to move your accounts if you want to move your accounts and still not have a loan.
    • Faith177
    • By Faith177 4th Oct 16, 4:49 PM
    • 2,398 Posts
    • 3,833 Thanks
    Faith177
    • #4
    • 4th Oct 16, 4:49 PM
    • #4
    • 4th Oct 16, 4:49 PM
    Hi all

    After some advice please.

    I'm looking to buy a new car and I wanted to take out a new personal loan from my bank at 3.5% for £10k over 5 years.

    So I applied online expecting to get the 3.5% APR only for a few days later when the documents came though to only been approved at 9.9%. Triple the amount!

    I'm 28 and I earn a good salary (27k). And I still live with my parents so i don't really have any outgoing bills apart from my bike, phone and a little bit of rent. My current bills are probably only a quarter of my salary. Also my current car loan is on there as well. With the new car loan expected to take its place, just costing a few quid more. I also checked my credit score and its at 997 out of 999. I've never missed a payment on anything.

    So I phoned the bank to find out why and all I got was that they couldn't tell me why I only got approved at 9,9%. The only reason I can think of is because of my age and I don't own a house?

    As I said as far as i'm concerned my credit rating has nothing wrong with it and I really can't think of a reason why I wouldn't get the 3.5% APR

    So my question is is there any point in applying to anybody else if my own bank will only give me 9.9%? Can I appeal against it or something or put a complaint in or is it worth me threatening to move my current and savings account to another bank in hope they will then give me a better rate?

    Thanks

    Ben
    Originally posted by benevs
    The bank will have their own internal requirements for someone to be eligible for a 3.5% loan. Only a certain percentage of customers will get the 3.5% the rest will get whatever the bank decided and it is as simple as that as they are lending the money that can impose what terms they want

    You're only choice is to accept it or say no thanks you can't make them give you a lower rate if you're not eligible for it
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    • benevs
    • By benevs 4th Oct 16, 4:53 PM
    • 25 Posts
    • 3 Thanks
    benevs
    • #5
    • 4th Oct 16, 4:53 PM
    • #5
    • 4th Oct 16, 4:53 PM
    Thanks both,

    The only problem with 0% finance deals is that it tends to only be main dealers, which means I'll be paying more for the car anyway.

    I've had plenty of credit in the past for other cars loans, phones and a personal loan before. I also have a credit card but with nothing on it at the moment, but as I said I've never missed a payment on anything. So I don't think its limited credit history.

    I think I'm just annoyed that I didn't get the lowest APR even though there is nothing wrong with my credit and it makes me think that very few people will get loans at the APR
    • benevs
    • By benevs 4th Oct 16, 4:54 PM
    • 25 Posts
    • 3 Thanks
    benevs
    • #6
    • 4th Oct 16, 4:54 PM
    • #6
    • 4th Oct 16, 4:54 PM
    Thanks, i guess I'd like to know what these requirements are exactly because I can't see how I don't tick all the boxes, or so to speak
    • zx81
    • By zx81 4th Oct 16, 4:57 PM
    • 9,400 Posts
    • 9,237 Thanks
    zx81
    • #7
    • 4th Oct 16, 4:57 PM
    • #7
    • 4th Oct 16, 4:57 PM
    They won't tell you their precise criteria as it can encourage applicants to...enhance their application details.
    • zx81
    • By zx81 4th Oct 16, 4:58 PM
    • 9,400 Posts
    • 9,237 Thanks
    zx81
    • #8
    • 4th Oct 16, 4:58 PM
    • #8
    • 4th Oct 16, 4:58 PM
    51% or more of successful applicants will get the headline rate.
    • DCFC79
    • By DCFC79 4th Oct 16, 5:02 PM
    • 27,771 Posts
    • 17,534 Thanks
    DCFC79
    • #9
    • 4th Oct 16, 5:02 PM
    • #9
    • 4th Oct 16, 5:02 PM
    Thanks, i guess I'd like to know what these requirements are exactly because I can't see how I don't tick all the boxes, or so to speak
    Originally posted by benevs
    You wont find out what the lenders criteria is, if it was known then everyone else would go to great lengths to make themselves appear suitable applicants meaning the lender wouldnt make much money.

    To be honest 9.9% isnt bad.

    Your confident you can meet the monthly paymemts so where have you put the money you would use for the monthly payments ?
    Je Suis Charlie
    • Gaz83
    • By Gaz83 4th Oct 16, 5:02 PM
    • 3,362 Posts
    • 6,357 Thanks
    Gaz83
    Thanks, i guess I'd like to know what these requirements are exactly because I can't see how I don't tick all the boxes, or so to speak
    Originally posted by benevs
    Won't happen.

    If banks published information along the lines of "to get the headline rate you must have a credit profile of x, y and z", then all that would happen is everyone who applied would suddenly have a credit profile of x, y and z.
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    • Jamiesmum
    • By Jamiesmum 4th Oct 16, 5:04 PM
    • 310 Posts
    • 364 Thanks
    Jamiesmum
    27k salary, you only use 25% of it on bills, wouldn't it be much better to avoid any interest save 2/3 months wages and trade your current car in?

    Then you'll own it outright, no interest and no loans.

    Personal preference of course, but seems like the better option. What car you looking at?
    • mrbloggs
    • By mrbloggs 5th Oct 16, 7:25 AM
    • 1 Posts
    • 0 Thanks
    mrbloggs
    Got my car loan from Sainsburys bank about 3 months ago,borrowed £8000 over 4 yrs at 3.5%,was advised to go there by someone in the car business.
    Am self-employed live in a rented flat and got a good credit history,never had to show them books either.
    Had the money within a week,maybe you could try them as there interest rates aren't bad.
    • mcpitman
    • By mcpitman 5th Oct 16, 7:47 AM
    • 396 Posts
    • 228 Thanks
    mcpitman

    Can I appeal against it or something or put a complaint in or is it worth me threatening to move my current and savings account to another bank in hope they will then give me a better rate?

    Thanks

    Ben
    Originally posted by benevs
    So that savings account then..... what's in that? If you can afford to repay a loan every month, why haven't you saved up the money to buy the car outright?

    In addition, you can threaten the bank all you like, they won't care and still won't lend you the money.
    Life isn't about the number of breaths we take, but the moments that take our breath away. Like choking....
    • foxy-stoat
    • By foxy-stoat 5th Oct 16, 9:09 AM
    • 1,175 Posts
    • 650 Thanks
    foxy-stoat
    Well done for getting accepted for a £10,000 loan...

    If your taking home £1750 say and only spending around £450 on bills...wheres the only £1350 a month going? You could easily save this and buy the car outright.

    I wouldnt worry or look at any numbers Noddle or Experian give you, they are meaningless.
    • iolanthe07
    • By iolanthe07 5th Oct 16, 12:12 PM
    • 4,664 Posts
    • 4,428 Thanks
    iolanthe07
    Don't take it personally. The bank may just have fulfilled its quota for low interest loans that month; they're not going to lend at low interest more than they are obliged to, to meet the 51% requirement.
    I used to think that good grammar is important, but now I know that good wine is importanter.
    • CLAPTON
    • By CLAPTON 10th Oct 16, 12:11 PM
    • 40,930 Posts
    • 29,690 Thanks
    CLAPTON
    Thanks both,


    I've had plenty of credit in the past for other cars loans, phones and a personal loan before. I also have a credit card but with nothing on it at the moment, but as I said I've never missed a payment on anything. So I don't think its limited credit history.
    Originally posted by benevs
    oh dear,
    living at home and earning 27k you should be saving about 10 grand a year towards a house.
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