Advice Please- whether or not to accept loan

counting4christmas

Earlier today my partner applied for a loan with Tesco for £8300 over 4 years as the rate that they were advertising was 8% APR and appeared one of the lowest - Tesco have since called him back and said that they have accepted his application but because of his personal circumstances willl only offer him the loan with an 11.9% APR. His dilemma is whether or not to accept this loan or to apply to either Nationwide or Asda who are also advertising 8% APR - I know that applying for loads of loans will be detrimental to his credit rating so was wondering if someone could offer some advice of what to do.

Thanks in advance

jonesMUFCforever

To be honest unless your credit rating is A1 with no blemishes whatsoever then 11.9% is not a bad rate.
You could make it cheaper by overpaying when you can (check that they allow this first).

You are right in saying too many credit searches on you will make things worse.

cos_2

How interesting because I just applied for a Tesco loan at the weekend. When I went through the forms online it suggested the rate was 8.2%. This is for £18k over 7 years. :eek:
The paperwork came in yesterday and it had become 9.9% and I was a bit peeved. I'm in no hurry for this loan, and have a little holiday starting tomorrow, so I'm going to wait till the middle of next week before I accept or decline them.

I think Jones is right that the rate is reasonable in today's climate for both of us, and I am also concerned that I don't want a bunch of searches on the CRAs. I'll update when I decide what to do. I may apply elsewhere, just once, to see what rate is offered.

By the way, my own bank HBOS sends me loan leaflets at something like 12.5%.

My mortgage is currently 1.39% so I may be changing my mind about reasonable loan rates...:p

Credit_Jake

I read online that they only have to offer their lowest fee to a very select few customers. Having never had a loan before I thought no way as I had no credit rating but they offered me one with 7.9%.

BenL

2/3rds of accepted applicants have to be given the typical rate.

So there should be 4 customers reporting on this thread next to offset the both of you.

duggie1982

Couple of years ago my sister applied to tesco at 5.9% for £8000 and got it. Her credit was superb at the time though

[Deleted User]

duggie1982 wrote: »

Couple of years ago my sister applied to tesco at 5.9% for £8000 and got it. Her credit was superb at the time though

Alots changed in 2 years,in fact everythings changed in those 2 years