Tesco loan application process....

stephane_2

I am looking to borrow £12,500 so Tesco loan sounded good. Applied this morning and within 3 hours got a call from Tesco Finance to tell me that I had been accepted. The interest is slightly higher than expected 11.9% but still not bad. I was surprise to see how quick they were, when she call me, she sounded quite pushy, asking me if I was accepting their offer!!! I said to them that would wait to receive their paper & think about it. Maybe I should have tried with my own bank First Direct....don't know if I should now...

welshmr

Hello, your in the same boat as me.. we loan amount and also with first direct :-)

I applied for the loan over the phone and got a rate of 7.9 i believe also offerd 2 month payment holiday at the start.

however they do take some time so rang first direct to see if i would qualify but they refused as we went over the overdraft just after xmas as our money was late going into the account by 1 day, so the next day 1600 went in and all was fine, however still got landed with £50 charge :-(

so First Direct is a NO,no hope Tesco pick their speed up and the underwrites approve, already been declined by 2 lenders :-(

good Luck though !

BLT_2

stephane wrote: »

I am looking to borrow £12,500 so Tesco loan sounded good. Applied this morning and within 3 hours got a call from Tesco Finance to tell me that I had been accepted. The interest is slightly higher than expected 11.9% but still not bad. I was surprise to see how quick they were, when she call me, she sounded quite pushy, asking me if I was accepting their offer!!! I said to them that would wait to receive their paper & think about it. Maybe I should have tried with my own bank First Direct....don't know if I should now...

You have access to 16k of credit card debt and you are applying for a 12k loan? I assume this is for the purposes for consolidation - otherwise thats an immense amount of credit

stephane_2

BLT wrote: »

You have access to 16k of credit card debt and you are applying for a 12k loan? I assume this is for the purposes for consolidation - otherwise thats an immense amount of credit

That was not for consolidation....and yes maybe I have 16K available credit which I will probably never need but I have an excellent income....

stephane_2

welshmr wrote: »

Hello, your in the same boat as me.. we loan amount and also with first direct :-)

I applied for the loan over the phone and got a rate of 7.9 i believe also offerd 2 month payment holiday at the start.

however they do take some time so rang first direct to see if i would qualify but they refused as we went over the overdraft just after xmas as our money was late going into the account by 1 day, so the next day 1600 went in and all was fine, however still got landed with £50 charge :-(

so First Direct is a NO,no hope Tesco pick their speed up and the underwrites approve, already been declined by 2 lenders :-(

good Luck though !

Once I got all the paperwork from Tesco, decided to apply with First Direct, did it online, was instantly approved for the amount required & from the moment I had signed online credit agreement, the money was in my account in a matter of seconds, no fuss. I was scored internally, no credit check.

BLT_2

stephane wrote: »

That was not for consolidation....and yes maybe I have 16K available credit which I will probably never need but I have an excellent income....

Thats good news, however, and I hasten to add that I am not an expert in this but am rather going from what I have read on these boards since joining, if you get the loan and don't need the credit cards might be worth closing some of them down, otherwise it could impact adversely on your credit rating, as companies would see that you have access to 28k of credit, and would treat any future applications with a certain amount of caution.

never-in-doubt

BLT wrote: »

Thats good news, however, and I hasten to add that I am not an expert in this but am rather going from what I have read on these boards since joining, if you get the loan and don't need the credit cards might be worth closing some of them down, otherwise it could impact adversely on your credit rating, as companies would see that you have access to 28k of credit, and would treat any future applications with a certain amount of caution.

Morning! Whilst I agree, in principle, with what you're saying it should be worth noting that Stephane did say he earned a great wage.... So say for arguments sake he earns £50k and does not have a mortgage, his £30k available credit is still better positioned that someone that earns £12k and has a £10k loan - if you see what I mean?

My available credit to salary ratio was always less than 10%, but that wasn't really realistic cos my mortgage (i.e £1500+ per month) is in the wifes name, therefore had I borrowed anything like 90% - i'd be beaten on affordability..... so although these systems seem to think they can manage and work out percentages for us, they are nothing more than a sales tool for the CRA.

When the new European Credit Directive hits home (June or 2011 at latest) then we'll see these silly features removed from credit files as they would not be as relevant as factual accurate data.... accurate being the operative word here