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Does your credit score affect the APR on a loan you are applying for

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I went on money supermarket to compare loans, i opted for the one with least APR 11.9 % with Moneyback Bank, but when all the paperwork arrived for me to sign, it had gone up to over 16%APR.
Anybody know why?

Comments

  • iolanthe07
    iolanthe07 Posts: 5,493 Forumite
    Yes, your credit score does largely determine the rate you will be offered. Obviously you will get a better deal if you have a history of paying your debts promptly and in full, because you will be seen as a good risk.
    I used to think that good grammar is important, but now I know that good wine is importanter.
  • Thanks for your reply
  • ive just been on Experian and found out i have a score of 632, dont understand how it works,but i think its still a good score isnt it?
  • iolanthe07
    iolanthe07 Posts: 5,493 Forumite
    ive just been on Experian and found out i have a score of 632, dont understand how it works,but i think its still a good score isnt it?

    It doesn't sound all that good to me, to be honest. I think to get the best deals you need to be over about 975. Things are tightening up very quickly at present.
    I used to think that good grammar is important, but now I know that good wine is importanter.
  • dont understand why my score isnt at the top end ,i owe £15000 on my mortgage and owe £1600 on a credit card,no defaults or anything like that
  • iolanthe07
    iolanthe07 Posts: 5,493 Forumite
    Perhaps you need to check your Exzperian report carefully in case of identity theft. My circumstances sound similar to yours (no defaults or anything) and my score is 986.
    I used to think that good grammar is important, but now I know that good wine is importanter.
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