How many loans can you apply for?

msandford

Hi,

I've applied for a £15k+ loan with Tesco. Didn't realise I'd have to wait for the decision to be sent in the post. I was wondering how many different loans it is best to apply for before making a decision. Does it look bad if you put in multiple applications? I wouldn't mind trying out Sainsbury's as they give an instant decision and also A&L (after tomorrow as apparently they're launching an 8.3% product).

Any advice would be greatly appreciated.

Thanks.

GiraffeMan

Hi
Each loan application will show on your credit report. The more searches registered, the more desperate it appears you are for borrowing and some lenders may grow weary.
I would suggest cancelling any any credit cards with nil balances that you don't use, to lessen the amount of credit you are exposed too.

msandford

But is it not reasonable for someone to get a few quotes, just like you would with say car insurance, before making a decision, since you don't know what APR you will be offered?

I am just about to submit an application to Sainsbury's, I applied to Tesco about an hour ago. Wise?

Apples2

msandford wrote: »

But is it not reasonable for someone to get a few quotes, just like you would with say car insurance, before making a decision, since you don't know what APR you will be offered?

That's correct, it's a bit of a no win situation.

you won't know what APR you will be offered until they have conducted a search on you, which will be visible to the next lender.

The next lender sees you have just made an application so becomes wary of you (APR goes up)

Third lender sees two recent searches so thinks you are desperate = APR goes up

Fourth lender sees you as an el-desperado frantically trying to grab as much money as you can = rejection.