Nationwide "Soft Search" loan

xdm941

Hello everybody!

Long time user but first time poster.

I was wondering if anyone can give a little more info on the "soft" credit search that Nationwide performs when applying for a loan. The soft search from what I can assertain does not leave any visible credit search (as least to other lenders).

If it returns an APR does that mean it will accept you for a loan? I expect the answer is probably no but does it give you a good indication that you would be accepted??

Any advice or tips would be great!!!

Many thanks

Chris

KingElvis

From what I can gather, the soft search is a quotation search, just like with car insurance. It looks at your credit file and works out your likely APR based on what it finds there.

I would imagine if it doesn't like what it finds, it will tell you thanks but don't call us, we'll call you......................

I tried it a few weeks ago and got an apr of 8.9 or something and it shows on Experian as a quotation serach.

Hope that helps.

P.S you can also do a soft search on their credit card with no impact on your credit history.

nt1311

KingElvis wrote: »

From what I can gather, the soft search is a quotation search, just like with car insurance. It looks at your credit file and works out your likely APR based on what it finds there.

I would imagine if it doesn't like what it finds, it will tell you thanks but don't call us, we'll call you......................

I tried it a few weeks ago and got an apr of 8.9 or something and it shows on Experian as a quotation serach.

Hope that helps.

P.S you can also do a soft search on their credit card with no impact on your credit history.

I got the same rate, 8.9, but then the rate increased by 50% when they accepted so I'm not entirely sure how it works.

KingElvis

nt1311 wrote: »

I got the same rate, 8.9, but then the rate increased by 50% when they accepted so I'm not entirely sure how it works.

That's becuase they then do a full search of all three (maybe two) CRAs and recalculate the loan.

It does however give you an idea if you're likeley to be accepted.

I would try your own bank first if you have a good long standing account conduct.

choccybuttons

They give better rates if your a current account customer

shebanjoed

I applied today after the quote given and it was the same APR as the quote.

Email received later today - hoping it doesn't change but you never know.

"Thank you for your personal loan application. I am pleased to tell you it has been approved in principle. The loan documents have been posted to you. Please sign and return along with any other information requested. "

Rupert_Bear

nt1311 wrote: »

I got the same rate, 8.9, but then the rate increased by 50% when they accepted so I'm not entirely sure how it works.

I was given a pre approved rate from Lloyds of 24.5%. However when I went for the full application it went down to 8.1%.

nt1311

KingElvis wrote: »

That's becuase they then do a full search of all three (maybe two) CRAs and recalculate the loan.

It does however give you an idea if you're likeley to be accepted.

I would try your own bank first if you have a good long standing account conduct.

I hold accounts with Experian and Equifax, both showing 'Good' ratings. I called Nationwide today to question the validity of their soft search in my case and they couldn't really give me an answer, which is pretty annoying. Today I put in a new soft quote application and I'm still getting 8.9%. They're definitely searching my Experian account when calculating the APR as they're leaving a footprint. There's no record on Equifax of any credit searching, either for the quote or the application.

izools

If the Nationwide Pre-App quote comes back at 24.4% APR this means you'll be declined - it is the "highest" apr the system can manage and is displayed if your credit score drops below the minimum acceptable.

tricky124

I go for a loan with Nationwide.
As avertised the loan rate is 6.5% being a flex account customer.

This is £13,000 over 60 months @ £252/month.
I have no credit issues, no loans, no morgage and average income. No other applications have been made.

Then why when the application was processed the interest rate rised to some 8.7% with a monthly payment of £305/month?
Over the term this is an extra £3050.

I cannot but think "robbing baskets"

Hence - I go to HSBC and sort the same loan @ £254/month

Can anyone explain this??