Why do HSBC have high APR% loans...?

findingnemo^^

Hi everyone,

Just wanted to ask a couple of quick questions as I'm new to the world of loans.

I'm after a loan of between £6000-7000, I currently have my current account with HSBC. I applied to go with HSBC but their APR is nearly double their competitors. Speed is of importance to me as I've got my eyes on a used car.

Are their any loans companies with competitive APR%'s that would transfer the money pretty much straight away?

Many thanks, and Merry Christmas!

[Deleted User]

the APR they offer varies as it does with all lenders depending on each customer,if they are offering you a loan with a high APR they see you as high risk,out of interest what APR are they offering?

findingnemo^^

woodbine wrote: »

the APR they offer varies as it does with all lenders depending on each customer,if they are offering you a loan with a high APR they see you as high risk,out of interest what APR are they offering?

HSBC are offering 15.4% APR.

I have never had a loan before so this all new to me.

Do most banks send you a cheque or do they pay it straight into your current account?

Thanks

bengalknights

findingnemo^^ wrote: »

HSBC are offering 15.4% APR.

I have never had a loan before so this all new to me.

Do most banks send you a cheque or do they pay it straight into your current account?

Thanks

They generally pay it into your bank account that you will use for repayment if direct debit is setup unless you specify that you would like a cheque or alternative account to be credited

iolanthe07

15.4% is high, but not outrageously so. It depends on how risky they think you are. Usually,they will transfer the loan directly into your current account.

Andy7856

Hi

I used to work for HSBC, and one reason why they offer high APR is the amount of people who would tell me the same story,

"I've banked with HSBC since it was Midland Bank, and I'd prefer to take out a loan from you than XXX company so I know who I dealing with" Easy sale for me, and many a sales target met by "loyal customers"

They capitalise on that relationship, and even try to reduce THEIR RISK (eg if you default) by flogging you PPI to cover THEM, which YOU pay for.

Nuff said...

danouk

HSBC become more competitive above £7000, 7.6% typical showing in my internet banking at the moment. You'll find that many banks offer significantly lower APRs at 7500 or above.

Rates on loans under 7500 and for shorter periods are commanding high APRs at the moment - the days of 5 grand for 3 years at 6.9% are long gone I'm afraid.

Best deals listing can be found here: http://www.moneysavingexpert.com/loans/cheap-personal-loans

Remember that all loan companies price their loans based on their assessment of your individual circumstances. They must offer the quoted "typical" rate to 66% of successful applicants (50% after 1 Jan IIRC) - that doesn't mean that they must offer it to you, even if you are successful.

findingnemo^^

Sorry to bring up my old thread, but I didn't think my query was deserving of a new one.

After shopping round, I decided to try HSBC again for a loan of £7000 @ 7.6%.

I filled in the application (took literally a few minutes), which was accepted. The money has already been transferred to my current account (I bank with HSBC). Does this mean that the loan has been fully completed, as I was expecting a more drawn out process.

Many thanks.

danouk

If you've got the money that means you're all done. You will have "signed" the credit agreement electronically as part of the application process.

You may get a hard copy of the agreement in the post.

findingnemo^^

danouk wrote: »

If you've got the money that means you're all done. You will have "signed" the credit agreement electronically as part of the application process.

You may get a hard copy of the agreement in the post.

Many thanks danouk. I did give the T&C's a good going over, but as this is my 1st loan I thought the process would take least a week to complete!

danouk

As you've discovered, the process can be very quick if your application is straightforward and doesn't need to be manually reviewed by an underwriter. It helps that HSBC have your current account too.