Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • mgrowe
    • By mgrowe 12th Oct 16, 1:23 PM
    • 10Posts
    • 3Thanks
    mgrowe
    Advertised rates are a con - HSBC
    • #1
    • 12th Oct 16, 1:23 PM
    Advertised rates are a con - HSBC 12th Oct 16 at 1:23 PM
    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.
Page 1
    • Clive Woody
    • By Clive Woody 12th Oct 16, 1:28 PM
    • 4,254 Posts
    • 4,877 Thanks
    Clive Woody
    • #2
    • 12th Oct 16, 1:28 PM
    • #2
    • 12th Oct 16, 1:28 PM
    I consider myself to be a good risk
    Originally posted by mgrowe
    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%
    Rugby Union - The Greatest Game
    • Pixie5740
    • By Pixie5740 12th Oct 16, 1:29 PM
    • 8,846 Posts
    • 11,853 Thanks
    Pixie5740
    • #3
    • 12th Oct 16, 1:29 PM
    • #3
    • 12th Oct 16, 1:29 PM
    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?
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • ryanm8655
    • By ryanm8655 12th Oct 16, 1:38 PM
    • 40 Posts
    • 8 Thanks
    ryanm8655
    • #4
    • 12th Oct 16, 1:38 PM
    • #4
    • 12th Oct 16, 1:38 PM
    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).
    • PeacefulWaters
    • By PeacefulWaters 12th Oct 16, 2:29 PM
    • 5,054 Posts
    • 6,076 Thanks
    PeacefulWaters
    • #5
    • 12th Oct 16, 2:29 PM
    • #5
    • 12th Oct 16, 2:29 PM
    Well obviously you'd be a better judge of your own risk profile than a lender advancing £billions in unsecured credit each year.
    • MallyGirl
    • By MallyGirl 12th Oct 16, 2:44 PM
    • 1,551 Posts
    • 3,749 Thanks
    MallyGirl
    • #6
    • 12th Oct 16, 2:44 PM
    • #6
    • 12th Oct 16, 2:44 PM
    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).
    Originally posted by ryanm8655
    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
    • Thrugelmir
    • By Thrugelmir 12th Oct 16, 2:45 PM
    • 51,211 Posts
    • 42,993 Thanks
    Thrugelmir
    • #7
    • 12th Oct 16, 2:45 PM
    • #7
    • 12th Oct 16, 2:45 PM
    I was very surprised as I have a high credit score and no missed payments on anything
    Originally posted by mgrowe
    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.
    “A man is rich who lives upon what he has. A man is poor who lives upon what is coming. A prudent man lives within his income, and saves against ‘a rainy day’.”
    • ryanm8655
    • By ryanm8655 12th Oct 16, 2:49 PM
    • 40 Posts
    • 8 Thanks
    ryanm8655
    • #8
    • 12th Oct 16, 2:49 PM
    • #8
    • 12th Oct 16, 2:49 PM
    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
    Originally posted by MallyGirl
    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.


    Anyway...live and learn...
    • tidds
    • By tidds 12th Oct 16, 5:30 PM
    • 121 Posts
    • 59 Thanks
    tidds
    • #9
    • 12th Oct 16, 5:30 PM
    • #9
    • 12th Oct 16, 5:30 PM
    Consolidation loans never get a good rate.
    • JJG
    • By JJG 12th Oct 16, 6:16 PM
    • 197 Posts
    • 229 Thanks
    JJG
    Consolidation loans never get a good rate.
    Originally posted by tidds
    That's an untrue statement.
    • GingerBob
    • By GingerBob 12th Oct 16, 7:58 PM
    • 3,018 Posts
    • 1,276 Thanks
    GingerBob
    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.
    • mgrowe
    • By mgrowe 13th Oct 16, 10:35 AM
    • 10 Posts
    • 3 Thanks
    mgrowe
    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%
    Originally posted by Clive Woody

    Yes but I have applied to Santander and have been accepted for the same amount over the same term and at 3.2%.
    • somethingcorporate
    • By somethingcorporate 13th Oct 16, 10:44 AM
    • 8,690 Posts
    • 8,422 Thanks
    somethingcorporate
    Not sure your thread title is appropriate. As has been mentioned above the representative rates have to be offered to the majority of successful applicants. You weren't judged the risk you through you were!
    Thinking critically since 1996....
    • JJG
    • By JJG 13th Oct 16, 10:45 AM
    • 197 Posts
    • 229 Thanks
    JJG
    Yes but I have applied to Santander and have been accepted for the same amount over the same term and at 3.2%.
    Originally posted by mgrowe
    And Santander are a different bank with completely different scoring criteria and risk assessments. HSBC are apparently known for their very strict lending policies.
    • Pixie5740
    • By Pixie5740 13th Oct 16, 10:48 AM
    • 8,846 Posts
    • 11,853 Thanks
    Pixie5740
    Yes but I have applied to Santander and have been accepted for the same amount over the same term and at 3.2%.
    Originally posted by mgrowe
    Yes because Santander have their own way of scoring you just as HSBC has theirs. (Neither way has anything to do with the credit scores generated by the credit reference agencies since lenders can't even see those scores let along use them.) Whilst Santander might rate you highly HSBC clearly doesn't but doesn't rate you so low that they just straight out decline you.

    The rates are clear on each high street lenders' website where they state the advertised rate is a representative rate.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

3,597Posts Today

5,618Users online

Martin's Twitter