Loan Applications

Roobaloo

Hello!

I was looking for some advice regarding loan applications. I've recently applied for a Tesco Personal Finance loan, I've been accepted but I'm not overly happy with the offer received.

Am I able to apply elsewhere without any effect on my credit score?

Thanks,
R

digitalphase

If you apply elsewhere you will have another search on your file, which depending on how many other searches you have on there, may be detrimental.

I guess what you mean is, Tesco didn't offer you as much as you wanted? I'm not au fait (sp?) with loans, but did you not specify how much you wanted to borrow when you applied?
Or are you unhappy for another reason?

Roobaloo

I had already typed this out but I got signed out....Grr!

Basically, it was my own mistake. I wanted £8000 over 7 years for Home improvements. Whilst entering my credit card balance during the application, I was asked if I wanted to use the loan to pay off this balance. It's not particularly high but more than I could pay off in one lump sum, so I worked it out that if I paid off the credit card straight away, I could extend the project (home improvement) and save up what would've been the card payments to make the difference...so I said yes

(I explained that better the first time I type it!!)

...this immediately meant the term was reduced to 5 years, but it wasn't pointed out to me until Tesco contacted me to confirm my application was successful.

Whilst I can still afford it, the repyaments are significantly higher than my budget...and as the work is not essential...I'd rather not take it on.

The Tesco representative said that the application could not be adjusted and I'd need to reapply. I'm just concerned about damaging my credit rating for non-essential costs.

pendragon

The reason this has occured is as the Tesco loan criteria is you can take consolidation loans for a maximum of 5yrs unless the loan is purely for home improvements of which it does say on their site.

I would call back and say you would like to go ahead but for a lower amount now the term has changed. I would not reapply yourself as that would be unnecessary and damaging to your credit scoring. I can't see any reason why they cannot rekey the original loan which no further credit search.

Roobaloo

It was a lapse of concentration on my part, I had seen the maximum term for consolidation but as I hadn't originally intended to use it as such, clearly didn't take the information on board!!

I definitely don't want to reapply if I can avoid it! I'll give Tesco another call and see what they can do, if anything!!

Fabulous!

Thanks all!
:T