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  • FIRST POST
    • jdave76
    • By jdave76 11th Jul 17, 10:27 PM
    • 6Posts
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    jdave76
    loan successful
    • #1
    • 11th Jul 17, 10:27 PM
    loan successful 11th Jul 17 at 10:27 PM
    " I'm pleased to tell you that your application for £8000 at 15.9% APR has been successful."

    But my application was for a loan at 3.1%. lol
    they lie, and just mess up your credit file with pointless searches.

    something needs to be done about the loan industry, and this is one of the better company's.
Page 1
    • Pixie5740
    • By Pixie5740 11th Jul 17, 10:30 PM
    • 10,827 Posts
    • 14,955 Thanks
    Pixie5740
    • #2
    • 11th Jul 17, 10:30 PM
    • #2
    • 11th Jul 17, 10:30 PM
    £10 to a charity of your choice says you applied for a loan with a representative rate of 3.1% APR.
    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.
    • jdave76
    • By jdave76 11th Jul 17, 10:40 PM
    • 6 Posts
    • 0 Thanks
    jdave76
    • #3
    • 11th Jul 17, 10:40 PM
    • #3
    • 11th Jul 17, 10:40 PM
    yes sure did, but there is no way of knowing what your applying for. it did say 90% chance and I thought 50% of people had to get the headline rate. it just wrong. :0(
    • robber2
    • By robber2 11th Jul 17, 10:44 PM
    • 255 Posts
    • 203 Thanks
    robber2
    • #4
    • 11th Jul 17, 10:44 PM
    • #4
    • 11th Jul 17, 10:44 PM
    no you were not wrong , you were just a part of the other 50%

    Rob
    • Pixie5740
    • By Pixie5740 11th Jul 17, 10:45 PM
    • 10,827 Posts
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    Pixie5740
    • #5
    • 11th Jul 17, 10:45 PM
    • #5
    • 11th Jul 17, 10:45 PM
    Just like lenders don't know how much of a risk (or profit) you will be until a credit check is performed.

    You seem to understand it was a representative rate (the representative rate is the rate offered to 51% of successful appliacants) so what lies have been told?

    What would you like to be done about the loan industry? For lenders only to offer loans at the representive rate? That would mean those that don't quite cut the mustard wouldn't be offered any finance at all, not even at a higher rate. Alternatively it could mean higher loan rates for everyone even those who are low risk borrowers.
    Last edited by Pixie5740; 11-07-2017 at 10:47 PM.
    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.
    • jdave76
    • By jdave76 11th Jul 17, 10:57 PM
    • 6 Posts
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    jdave76
    • #6
    • 11th Jul 17, 10:57 PM
    • #6
    • 11th Jul 17, 10:57 PM
    Think it would be much better if they got rid of typical APR balls, and just advertised the rate you
    Would get if successful, and the searches didn't effect your chance of getting another loan.
    • Clive Woody
    • By Clive Woody 11th Jul 17, 11:18 PM
    • 4,379 Posts
    • 5,000 Thanks
    Clive Woody
    • #7
    • 11th Jul 17, 11:18 PM
    • #7
    • 11th Jul 17, 11:18 PM
    You apply for a loan of a certain amount, the APR comes afterwards from the lender based on various criteria. They are required to quote a representative APR, which 51% of successful applicants will get.

    You do not apply for a loan at a certain rate, you apply for an amount and the rate comes later. It is a common misconception that you have applied for a loan at the representative rate.
    Rugby Union - The Greatest Game
    • forgotmyname
    • By forgotmyname 12th Jul 17, 12:12 AM
    • 25,688 Posts
    • 10,208 Thanks
    forgotmyname
    • #8
    • 12th Jul 17, 12:12 AM
    • #8
    • 12th Jul 17, 12:12 AM
    Think it would be much better if they got rid of typical APR balls, and just advertised the rate you
    Would get if successful, and the searches didn't effect your chance of getting another loan.
    Originally posted by jdave76

    How can they advertise the rate at which YOU will be successful when they do not know you and what your credit history is like?

    It's only AFTER they check your details that they know whether your the customer they want and at what rate to offer you.
    Punctuation, Spelling and Grammar will be used sparingly. Due to rising costs of inflation.

    My contribution to MSE. Other contributions will only be used if they cost me nothing.

    Due to me being a tight git.
    • jdave76
    • By jdave76 12th Jul 17, 5:56 AM
    • 6 Posts
    • 0 Thanks
    jdave76
    • #9
    • 12th Jul 17, 5:56 AM
    • #9
    • 12th Jul 17, 5:56 AM
    just think the current system stops competition ,to find out what your buying you have a search on your file which. so to shop about you would end up with lots of searches on your file which is bad.
    I think after a soft search or full search that doesn't effect anything, on a comparison site you should be pre approved for the rate that are willing to give you.

    Pies 50p, get to the till, oh it's £2.50 for you.
    • Pixie5740
    • By Pixie5740 12th Jul 17, 6:56 AM
    • 10,827 Posts
    • 14,955 Thanks
    Pixie5740
    That's a poor analogy. When you pay for a pie in a shop that's it, you've paid and the shop has it's money, the transaction is over. With loans lenders are giving you money to be repaid over a set time period. They have to assess the risks and rewards of giving you £Xk and your likelihood of repaying in full and on time. For whatever reason the lender you applied to thinks you are a higher risk/will be less profitable than the 51% offered loans at 3.1% APR.

    Until a full application has been submitted and "hard" credit checks carried out there is no way of analysing you as a borrower that is sufficient enough to guarantee the rate you will get. It's very similar to people getting a mortgage DIP from a lender that uses "soft" searches for the DIP then being declined or offered a smaller mortgage once the full application has been submitted.

    Each lender has there own way of determining whether to lend to you and at what rate. Some will be more put off by numerous searches than others.
    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.
    • DCFC79
    • By DCFC79 12th Jul 17, 8:25 AM
    • 29,958 Posts
    • 18,973 Thanks
    DCFC79
    Think it would be much better if they got rid of typical APR balls, and just advertised the rate you
    Would get if successful, and the searches didn't effect your chance of getting another loan.
    Originally posted by jdave76
    If you feel the system needs changing then go and campaign for it to be changed.

    Current system has worked for years so why change it if its not broke.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • PeacefulWaters
    • By PeacefulWaters 12th Jul 17, 9:43 AM
    • 6,849 Posts
    • 8,435 Thanks
    PeacefulWaters
    In the good old days they'd have just declined you.
    • jdave76
    • By jdave76 12th Jul 17, 10:37 AM
    • 6 Posts
    • 0 Thanks
    jdave76
    I bet martin agrees with me, doesn't allllow for shopping around. I don't think it should go against you for searches on your file, Think they have enough info to go on. prob best not to get loan anyway let's all stay within are means lol :0)
    • zx81
    • By zx81 12th Jul 17, 10:40 AM
    • 13,180 Posts
    • 13,491 Thanks
    zx81
    doesn't allllow for shopping around.
    Originally posted by jdave76
    Is that the Welsh spelling of 'allow'?
    • Tarambor
    • By Tarambor 12th Jul 17, 12:37 PM
    • 1,153 Posts
    • 798 Thanks
    Tarambor
    Iprob best not to get loan anyway let's all stay within are means lol :0)
    Originally posted by jdave76
    It is how I have a five figure bank account with a salary less than the national average. When you buy something in a sale on credit at 19.9% APR over 3 years you usually end up spending more than buying outright at full price. And if you're spending all of your spare cash and more on repaying borrowing then thanks to the interest you'll be paying everything you buy will be more than the sticker price especially for those who have got to the point they're having to pay their weekly living expenses with credit cards or overdrafts.

    I'll illustrate. If you have a £500 or higher balance on your card and can only afford to make minimum repayments on your credit card then that £2.99 Subway sandwich you buy with it won't be paid off for 8 years and it'll be having interest added to the remaining amount every month so you'll end up repaying around £5.28 in total.

    And that is why many people I know with a net take home £10,000 a year more than me can't seem to do as much with their money or save anything because they're effectively paying twice as much for everything they buy.
    Last edited by Tarambor; 12-07-2017 at 12:48 PM.
    • David555
    • By David555 12th Jul 17, 2:38 PM
    • 36 Posts
    • 31 Thanks
    David555
    I agree, something needs to change. In a ideal world it should only affect your credit file if you actually accept the loan once they've done their checks and decided what rate they are willing to give you. Remove the fact hard searches have any affect to your credit file unless you accept the loan/credit cards etc. Sounds logical to me
    • jdave76
    • By jdave76 12th Jul 17, 8:34 PM
    • 6 Posts
    • 0 Thanks
    jdave76
    It is how I have a five figure bank account with a salary less than the national average. When you buy something in a sale on credit at 19.9% APR over 3 years you usually end up spending more than buying outright at full price. And if you're spending all of your spare cash and more on repaying borrowing then thanks to the interest you'll be paying everything you buy will be more than the sticker price especially for those who have got to the point they're having to pay their weekly living expenses with credit cards or overdrafts.

    I'll illustrate. If you have a £500 or higher balance on your card and can only afford to make minimum repayments on your credit card then that £2.99 Subway sandwich you buy with it won't be paid off for 8 years and it'll be having interest added to the remaining amount every month so you'll end up repaying around £5.28 in total.

    And that is why many people I know with a net take home £10,000 a year more than me can't seem to do as much with their money or save anything because they're effectively paying twice as much for everything they buy.
    Originally posted by Tarambor
    nice, wish I had the same control.
    • mcpitman
    • By mcpitman 13th Jul 17, 8:23 AM
    • 522 Posts
    • 359 Thanks
    mcpitman
    " I'm pleased to tell you that your application for £8000 at 15.9% APR has been successful."

    But my application was for a loan at 3.1%. lol
    they lie, and just mess up your credit file with pointless searches.

    something needs to be done about the loan industry, and this is one of the better company's.
    Originally posted by jdave76
    Wrong, you applied for a loan of £8k, not a loan at 3.1%.

    As has been mentioned many times 3.1% is the typical APR offered to 51% of applicants.
    The applicants that recieve that rate fit the profile of customers that the loan company want to deal with.
    You were not one of the customers that fit that profile.

    It's a bit like car insurance where comanies like LV/Aviva say "average premium £300" (or similair). That will be for a customer who fits their profile. Doesn't mean a recently diqualified driver, with 11 points on thjeir licence will be insured for that amount now does it?

    It's all about risk profiling and you were deemed a bigger risk than the general profile of customer they want.
    Life isn't about the number of breaths we take, but the moments that take our breath away. Like choking....
    • DCFC79
    • By DCFC79 13th Jul 17, 8:31 AM
    • 29,958 Posts
    • 18,973 Thanks
    DCFC79
    I bet martin agrees with me, doesn't allllow for shopping around. I don't think it should go against you for searches on your file, Think they have enough info to go on. prob best not to get loan anyway let's all stay within are means lol :0)
    Originally posted by jdave76
    Have you asked him ?
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
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