Advice on Loan apr

du5t1n

hi all,

i have just applied for a loan for £10,000 over 7 years with the co-op bank, there website said typical apr of 8.9%.

i have a credit score of 999 out of 999 and can easily afford the payments. this morning i received the paperwork and the 'typical' apr is 15.3%. i rang them up and a not so helpful lady said that they cant do anything about this it goes on your circumstances and if i apply again i might get lower might get higher.

what i want to know is is this true? is it always that random? is she just putting me off.

cheers

Beast

Your credit score from the likes of Experian, etc is pretty worthless in the scheme of things as each lender uses their own lending criteria.

Unfortunately applyling again is unlikely to improve things for you given that it will likely be a rate based on your income, existing debt, and general affordability.

du5t1n

i just find it strange because i earn 20K + a year and this will get rid of an old loan and large overdraft, dont have my own my own home and have enough left over every month to pay this loan a few times

michael1983l

du5t1n wrote: »

i just find it strange because i earn 20K + a year and this will get rid of an old loan and large overdraft, dont have my own my own home and have enough left over every month to pay this loan a few times

They do not count credit you plan to pay off as being paid off they add what you currently owe with what you plan to borrow. Who's to say you will use the loqan to pay off old debt, they have no guarantee's.

Beast

As above, if you have existing debt, they will count this in the total amount of available credit which will be nudging towards a large proportion of your income.

CHR15

Living inside an Overdraft suggests you are not so good at managing your finances. Another straw on the camels back.

du5t1n

yeah i guess that thanks all