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Loan Application - APR doubled

Sir_Robert
Posts: 21 Forumite


in Loans
OK so I applied for a loan to buy a new car (as someone kindly wrote mine off in the middle of the night). AA loans looked good with APR of 7.9%, but when we'd got through the application process they would only offer me a rate of 14%.
I was seriously unhappy about this and asked to speak to a supervisor. He advised me that I should try doing a credit check with Experian and then writing to their underwriters to confirm why this is. I've checked with Experian and I have an excellent credit score of 999, but I'm not sure what to do next?
I'm concerned that my recent application to the AA will have a negative impact on my credit score if I try to get loans with other companies. I actually thought the AA looked a good deal with the initial payment window, but don't really want to wait as I need a car pretty quickly. I know in Matin's tips he suggested going to your current account bank for a loan is generally easier. However, HSBC 8.7% credit is not as attractive as some.
What do people think?
I was seriously unhappy about this and asked to speak to a supervisor. He advised me that I should try doing a credit check with Experian and then writing to their underwriters to confirm why this is. I've checked with Experian and I have an excellent credit score of 999, but I'm not sure what to do next?
I'm concerned that my recent application to the AA will have a negative impact on my credit score if I try to get loans with other companies. I actually thought the AA looked a good deal with the initial payment window, but don't really want to wait as I need a car pretty quickly. I know in Matin's tips he suggested going to your current account bank for a loan is generally easier. However, HSBC 8.7% credit is not as attractive as some.
What do people think?
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Comments
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Sir R,
Loan companies are only obliged to offer the advertised APR to 67% of applicants.
Does seem odd why the AA would do this to you with a perfect credit score though. It could be that they have already reached their quota of good applicants this month. It could be that another factor other than your experian score is counting against you, your profession, postcode, time in current employment, income etc, things that experian don't know about but that you put on your application.
One loan application shouldn't count against you, so I would try HSBC - 8.7% is still a good rate in the current market.
Your other option is motor credit, with some car companies offering good finance deals if you are looking at a new car?
Good luck
R.Smile, it makes people wonder what you have been up to.
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Thanks for the help there, I've applied with HSBC.0
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Bit of an update here, and unfortunately not a good one.
Applied with HSBC, but unfortunately as my salary doesn't go directly into this account they gave me a pretty poor rate of 15%. They explained that they could only 'see' an element of my income and this is what they base the risk on.
Am thinking of looking elsewhere, but am a little concerned about the impact of all the credit checks on my credit score.
In addition to this, I had a look for which providers were giving the best interest rates. I spotted that Halifax were doing a good deal of 8.9%. As it happens I have a small loan with Halifax (that I'll pay of with the new one), so gave them a call. The operator seemed to think it was highly unlikely that I'd get 8.9% and suggested 19% was the average, up to 30%.
Is now a bad time to try and get a personal loan?
Any advice, anyone?!?0 -
I applied for an £11k loan with Tesco's a couple of weeks ago and got accepted. This was after it was mentioned on here they were lending.0
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Could you not wait until the Insurance pays out on your written off one and avoid these expensive loans altogether??
If you know you have money coming your way, surely it is better to wait than pay 10+ % apr on any loan0 -
Whatever rates banks lend at, lending has never been so profitable. The margin between base at 0.5% and 7.9% is astronomical. But banks being banks and greed being their key word, they want to screw as much profit out of us as is possible.
Personally, I'd get on the autotrader website and see what I could buy for £500 pending insurance settlement.Don't lie, thieve, cheat or steal. The Government do not like the competition.
The Lord Giveth and the Government Taketh Away.
I'm sorry, I don't apologise. That's just the way I am. Homer (Simpson)0
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