being pre-approved for a personal loan

duck_dodgers

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Hello, I'm new and possibly a bit naive. For about the last twelve months, every time i log into my online banking there is an advert telling me "x amount is reserved for you". Clicking on it tells me that if my circumstances haven't changed recently, then I have been pre-approved for a loan of this amount. I'm looking at doing a bit of refinancing and my circumstances haven't changed recently. My credit report is ok apart from one default over 4 years ago and my credit scores are fair and good depending which reference agency i ask.

So my fairly obvious question is, is this too good to be true? I was thinking that my bank probably know my money habits better than most, so they'd be a logical place to start when looking for a loan.

Anyone got any pointers?

Cheers.

marshallka

duck_dodgers wrote: »

Hello, I'm new and possibly a bit naive. For about the last twelve months, every time i log into my online banking there is an advert telling me "x amount is reserved for you". Clicking on it tells me that if my circumstances haven't changed recently, then I have been pre-approved for a loan of this amount. I'm looking at doing a bit of refinancing and my circumstances haven't changed recently. My credit report is ok apart from one default over 4 years ago and my credit scores are fair and good depending which reference agency i ask.

So my fairly obvious question is, is this too good to be true? I was thinking that my bank probably know my money habits better than most, so they'd be a logical place to start when looking for a loan.

Anyone got any pointers?

Cheers.

Usually says in the small print on these "subject to status". I would check the t and c's here.

WhySoHard_2

Which bank is this son?

TheKeyMaker

Just don’t hold your breath, as per current circumstances banks are not very willing to lend money

And you’ve said:
“My credit report is ok apart from one default over 4 years ago…”

Doesn’t sound OK to me. Since your default still showing in the Credit File, it will always make a difference when they decide to lend or not; forget about the Score in the credit report. What really counts is its content.

iolanthe07

This 'pre-approved' marketing ploy is often found on unsolicited credit card applications too. It is meaningless - just means you are pre-approved to apply!

Louise1521

Don't know what back you are with, but Barclays do this, and it means just that with them, that you are pre approved, and get the money within hours.

duck_dodgers

well i did wonder, seeing as my bank is the halifax....

poppy_f1

Louise1521 wrote: »

Don't know what back you are with, but Barclays do this, and it means just that with them, that you are pre approved, and get the money within hours.

not always, i got a mailshot from barclaycard loans last year saying i was pre approved so went iwth them (not taking PPI) was refferred and a few days later got a decline letter
strangely later that day applied with RBS (My own bank) and got accepted straight away (no PPI again) and money in the bank the next day

Louise1521

That could be because Barclaycard Loans or Barclays are run seperately? . Annoying though, what's the point of saying that you are pre approved if you are not? Some marketing ploy no doubt.

WhySoHard_2

I think if it's Halifax it's actually for real. Go get that money son and also lend me a tenner while you're at it

mrcow

duck_dodgers wrote: »

Anyone got any pointers?

Cheers.

Yes!

Don't sign or appy for anything until you have confirmed what the deal is.

How much are you borrowing, and what for, how longover and what APR are you being offered?

It's not a good deal unless it's competitive. Halifax may well have a loan all set out for you, but that doesn't make it a good deal!