Personal Loans: how easy is it to get accepted

System

Cahoot - con artists!
My flexible loan rate started at the advertised rate, then over time, they have ramped it up more and more, until now, it stands at 8.3%. ???
When challenged, they simply tell you that they consider themselves to be amongst the most competitive lenders in the industry, when challenged more, they fail to reply to you.
Incidently, I decided to see if I could still get the advertised rate, so applied again. What a surprise - 5.8% was offered!
Beware - do not touch Cahoot with the proverbial barge pole!

peawack

I have a loan with the Co-op bank. They had asked me several times if wanted a top-up, so I eventually said yes.
They were advertising 6% but failed to tell me that my top-up was 11.9% (more than my existing loan, which I have being paying for thee years without missing a payment!).
Althoug the money was paid into my account, I declined to sign the agreement once I saw the deception, and paid it back. I then extracted an apology and was offered the top-up loan at my existing lower rate. After thinking long and hard I applied again on that basis but the offer was declined by them. They then said I could have a top-up loan at 14.9 % !!!
I have written two letters since ( over a four week period )but I have not been given the courtesy of a reply.

System

Cahoot - con artists!
My flexible loan rate started at the advertised rate, then over time, they have ramped it up more and more, until now, it stands at 8.3%.   ???
When challenged, they simply tell you that they consider themselves to be amongst the most competitive lenders in the industry, when challenged more, they fail to reply to you.
Incidently, I decided to see if I could still get the advertised rate, so applied again.  What a surprise - 5.8% was offered!
Beware - do not touch Cahoot with the proverbial barge pole!

It does state on Cahoot's website small print that 5.8% is for the first year only, then it reverts back to it's standard rate.

modu

Hi MSE'S Outthere,

Can someone please help me ?

I am seeking unsecured loan of 15k to buy a machine.

I relocated from to the U.K from the U.S 3 yrs ago but unfotunately did not register on the voters roll.

I have lived at my present address for 9 months, I am now on the electoral rol

In the last 19 months

H.P Loan 2.5k G.E Capital Bank (SETTLED)

Credit Card £1,200 (SETTLED)

Credit Card £1,400 (Balance £751 ) ( 1 Missed Payment )

Store Card (Balance £136)

Store Card ( Balance £471 )

I'm in full time employment, I have no C.C.J's

I earn 29K+ p.a, Single 39yr.o, currently in rented accommodation

Which lenders can I approach? I'm I a bad risk? Will anyone lend, If so how much.

With all i've read I'm really scared of messing it up i.e my credit record with multiple applications.

Please someone out there help with some advise !

Yours faithfully

V.confused

skg959 wrote:

i might be able to clarify a few points on this forum as i work in this field.

and no, i'm not telling you who for!

if you "apply" (i.e. get a quote over the phone) you WILL be 'credit scored' this will be based on an experian/equifax score (to look for fraud, CCJs, missed payments, outstanding credit) coupled with in-house scoring which is the result of the answers you give over the phone (home owner/salary etc) and this search WILL be recorded at the credit reference agencies.

this last part should be made clear by the company you are calling because lots of applications=lower scores= poor APR quotes; so you try more compaines=lower scores=poor APR quotes (can you see where this is going!)

the typical rates advertised are supposed to represent the APR which the majority of successful applicants receive. if they advertise 6.9% but offer you 12.9% it's because your APR is based on your "personal circumstances", that sounds good, doesn't it!

what it actually means is that your APR is based on 'rate for risk' if you are considered a higher risk you get offered a higher rate.

oh! and employer checks are regularly made. yes they will call your employer if the underwriters think they need to check. i.e. you sound suss/claim you are a bin-man on £25,000 p.a.

and for s kint who got a RBoS loan at a good rate but a crappy one from Lombard. RBoS own lombard so they defo use ALL of the same systems to assess you.

the 'bar' is just set at a different 'height' for different companies even if they are all under the same umbrella.

just don't go applying gung-ho for loans people, you are raising your own APR quotes if you do this excessively.

gibby

Im self employed and thought I might have trouble getting a loan with no proof of my real income.

I found out that all of the lenders have a limit of how much they will lend before accounts need to be provided or self assesment.

I simply rang them all up in advance and most were happy to give out the information without a question.


I had no problems getting a loan despite being turned down for 2 credit card appliactions recently


Gibby

VP

I wonder if anyone can tell me if they've had a bad experience with AA loans? Do they offer the typical rate? Or are they another provider that lures you in then hits you with a huge increase in APR when you apply?

I'm a homeowner with a good credit history, I make £22000 a year, set to increase in three months' time to £34000, and I'm a professional, as opposed to being self employed. I'm looking to borrow £7000 over three years to buy a car, but don't want secured finance.

I am a little worried by all the people who have had a bad experience even though they appear to me to be good risks - is this the way for everyone?

lou_martin

I was 20 when i first got accepted for a loan for £3,000 with HSBC, can't remember the rate but was so suprised i'd been accepted i took it. Since then i have consolidated with Northern Rock and been accepted a couple of times (but not used it) again with Northern Rock. All this and yet between the ages of 19 and 21 i moved about 10 times and was only earning £12000. I think there should be stricter controls and checks, I was in no position to take that loan but i thought i needed some money because I was living away from home and i had no family to help out. In hindsight i could have managed if i'd budgeted more carefully but I knew nothing at all about it which leads me to my other point - why isn't financial planning and budgeting taught at schools? - not everyone has sensible parents there to lead by example!!! Since then unfortunately i've got myself further in debt with credit cards and am now trying desperatley to be good!!!

MINMOUSE

I have one loan for with £1200.00 o/s which I am going to repay in the next few days but have just bought a car and need a loan of £6200.00 to finance it. Looked on MSE and found that Barlaycard and Northern Rock have the best rates going. As we have a £9000 limit on our cc that we never use as it's paid of in full each month I presumed we would get offered a pretty good rate. Filled out the online app for Northern rock but the site went funny at the end so am not sure whether or not the app went through. Tried to phone Northern Rock but they do not have an Help Desk that you can phone and were generally unhelpful. In the end I decided to phone Braclaycard and they done a quote while I was on the phone however they said that the best apr was 11.9% which is really high. I am now worried that for some reason our credit score has gone up. I asked at the end if he had done a credit search which he said he had but I did not give permission for this. Now feel in a muddle. need the money but will not pay 11.9%. Don't know whether to pop car on the credit card and look for 0% rate or to apply for another loan, or to get my husband to apply for the loan instead. Can anyone help!!!

babs01823

I applied for an unsecured loan as all equity in our property is tied up in charges (for sound reasons.not borrowing to cover debts) I used Martins links to loan companies who advertised unsecured loans, despite this and after long discussions with numerous companies from various parts of the globe, explaining it HAD to be unsecured, I still had credit searches done for a loan I could not take up, which left footprints on my credit rating. I found it very frustrating and fruitless, I even had one caller from accross the world who recorded my property value as £425 instead of £425000! hardly surprising i was refused a loan of £15000!
applications are so automated, you cannot discuss individual requirements and even if you do, it they seem to be ignored. Not a happy experience!

Rafter

I reckon both the AA and Alliance & Leicester (moneyback bank) are only accepting customers at the typical APR if they accept the overpriced insurance.

Applied to both and got a higher typical from A&L after the hard sell and refused outright by the AA despite good history and income.

Now with Egg on a totally flexible loan any paying £5 a month more in interest.

The sooner the regulator stops PPI being sold in the current way or insists it is included in the APR calculation, the better!

R.