Sainsburys loan - not as it seems

Maglet_2

Hi, am a new user and never posted before but am so disgusted at Sainsburys I feel compelled to let others know. Sainsburys are advertising (on this site in fact) 6.8% loans, as I use this site a lot I thought I would apply. My own bank had already agreed a loan at 8.5% so I had no worries about being accepted. I applied online and indeed was accepted "in principle" at this low rate. Upon phoning the number given, after going through all the information I had already given online, was told the loan would actually be at 9.5%!!! Normally I would just say no thanks, but thought this time I would query why they advertise one rate to offer another and insisted on being told what their criteria was to actually get the lower rate. Apparently they only offer this rate to 51% of applicants (thereby only bending the law and not actually breaking it) and the other 49% are offered higher rates depending upon credit scoring. Of course they don't explain that if you apply to several banks to get the best rate, your credit scoring will not show that YOU have turned the bank down, but the computer generated system of deciding the rate you pay, will assume YOU have been turned down several times. I know Sainsburys are not the only ones to do this, but beware - unless you know for certain your credit rating is perfect DO NOT GO TO SAINSBURYS AS YOU WILL NOT GET THE 6.8% RATE, for all you know the 51% have already got theirs so no more loans will be given at that rate at all.... one wonders why they are allowed to advertise this rate at all!!:mad:

Apples2

It is entirely normal for a lender not to divulge the machanism used to score you.

The 51% is the Industry norm, Blame the French! (okay, not only them but any excuse!)

http://www.moneysavingexpert.com/news/loans/2011/01/half-of-borrowers-wont-get-advertised-apr-as-eu-weakens-protection

The next appplicant may well get the advertised rate with Sainsburys whilst the next applicant at your bank might get a higher rate than you.
The scoring system is a closely guarded secret.

fozmcfc

All APRs are subject to status and are variable. You didn't fit their criteria for 6.9%.


It's the same with credit cards, I have just got a 15.9% deal, last time I applied my APR was 21.9% despite absolutely no change in circumstance everything being the same.


They are never going to tell people their exact criteria, otherwise people would be looking at trying to get around it by lying, bending the truth etc...


I bet your own bank don't offer 8.5% to everybody they give loans too either.


In short no loan company offers 100% of the people the advertised rate.

tinalives

I totally agree with your feelings on this Maglet.

I really don't think that the fact you have applied for a loan which you have declined to accept should be shown on your credit rating, (therefore having a negative impact upon later loan applications) but I think that we're unfortunately powerless to do anything about it.

I suppose it's fair enough if you've been DECLINED for a loan, but even then, if all lenders have different criteria for acceptance, why should they then ALSO take into account a loan declined by another lender who presumably is highly likely to require different criteria to them anyway?

Basically I think they will just do what they want, and we can either like it or lump it! C'est la vie!

NeverEnough

It just indicates that we are forced to accept unfair conditions and situations when it comes to financial products with any connection to "credit scoring" - the CRAs have no idea who you are, what you earn or your personal circumstances - indeed, as you have pointed out, the fact that YOU have rejected a loan rather than the bank rejecting YOU for one.

There are a number of illogical and unfair suppositions inflicted on us by the CRAs and the companies using them (virtually every company offering any kind of credit facility, however tenuous the links may be, as long as they pay the CRA fees) - for instance, multiple "searches" in a short period are widely regarded as extremely negative, and that you are "desperate" when in fact this may be completely inaccurate - you may simply have been looking for the best offer out there and as we all know, despite being asked not to do so, many companies will credit search you when you make initial enquiries, this whole "oh you can ask for a quote before a full application" routine simply is not accepted by all of them. The CRAs are there to make profits, for no other reason, and despite the so-called protection of various laws to ensure that information they keep on you is accurate, this is not always the case. I've had a situation where the same lender did six credit searches on me in one day for the same, single application - and then refused to amend their mistake, making it look as if I'd made six applications for credit in a single day, despite this not being the case. Fact is that the banks and big companies call the shots, ably abetted by the CRAs, and it is incredibly difficult, if not impossible, to have incorrect info amended, despite the CRAs protestations about how easy it is. Any "Notice of Dispute" is also very generic, explains nothing, and simply flags you up as an automatic rejection for any online application (claimed to be a "referral for manual consideration" but generally just rejection a few days later ).

The only way of not being pushed about by the lenders and the CRAs and subjected to unfair processes, is of course, not to rely on credit facilities at all. No way we are likely to win the war anytime soon as the murky world of the unfair "creidt scoring" processes will never be made publically available - no one has a "right" to a credit facility!! Once you apply, you accept their murky, unfair and absolutely non-transparent credit scoring processes!!

tinalives

NeverEnough wrote: »

It just indicates that we are forced to accept unfair conditions and situations when it comes to financial products with any connection to "credit scoring" - the CRAs have no idea who you are, what you earn or your personal circumstances - indeed, as you have pointed out, the fact that YOU have rejected a loan rather than the bank rejecting YOU for one.

There are a number of illogical and unfair suppositions inflicted on us by the CRAs and the companies using them (virtually every company offering any kind of credit facility, however tenuous the links may be, as long as they pay the CRA fees) - for instance, multiple "searches" in a short period are widely regarded as extremely negative, and that you are "desperate" when in fact this may be completely inaccurate - you may simply have been looking for the best offer out there and as we all know, despite being asked not to do so, many companies will credit search you when you make initial enquiries, this whole "oh you can ask for a quote before a full application" routine simply is not accepted by all of them. The CRAs are there to make profits, for no other reason, and despite the so-called protection of various laws to ensure that information they keep on you is accurate, this is not always the case. I've had a situation where the same lender did six credit searches on me in one day for the same, single application - and then refused to amend their mistake, making it look as if I'd made six applications for credit in a single day, despite this not being the case. Fact is that the banks and big companies call the shots, ably abetted by the CRAs, and it is incredibly difficult, if not impossible, to have incorrect info amended, despite the CRAs protestations about how easy it is. Any "Notice of Dispute" is also very generic, explains nothing, and simply flags you up as an automatic rejection for any online application (claimed to be a "referral for manual consideration" but generally just rejection a few days later ).

The only way of not being pushed about by the lenders and the CRAs and subjected to unfair processes, is of course, not to rely on credit facilities at all. No way we are likely to win the war anytime soon as the murky world of the unfair "creidt scoring" processes will never be made publically available - no one has a "right" to a credit facility!! Once you apply, you accept their murky, unfair and absolutely non-transparent credit scoring processes!!

Well said!!