Nationwide

Amish87

Hi,

I've just done a soft check for a loan with Nationwide. The APR they gave me was 8.9%, if i decide this is right for me and apply properly will i still get this APR or is it more of a guide?

On another note I applied for a loan with Sainsbury's but was unsuccessful. As I have a good credit record I assume this is due to another factor such as income or age?

Thanx for any help,
Amy.

somethingcorporate

Without knowing either your income or age how could anyone tell?

The soft check is merely a guide (otherwise it wouldn't be soft), you will not find out until you apply properly but it would give you a reasonable (but not definite) expectation.

Some questions that may help us answer your query:
How much are you borrowing?
How much do you earn?
What other credit commitments do you have?
How is your credit history?

Tixy

The soft search should be a reasonably good indication - you might not get a loan at 8.9% but if its given that as a guide then I'd imagine that is unlikely they'll then decline you altogether (but the APR might end up being a bit higher).

Regarding sainsburys - bit hard to say without knowing more about your situation (such as your age or how much you earn).

Amish87

I'm 24, 25 in May. I'm on minimum wage but work full time getting paid weekly...usually works out 210 pounds a week. I still live with my parents but obviously pay them rent. I've always lived at the same address and i'm on the electoral role. The three things that appear on my credit history are: phone contract with Orange of which i have one late payment from January 2009 but the other payments starting from Nov 2008 are up to date, Tesco credit card which is paid in full every month, and my bank account which is in plus figures.

Loan wise i'm looking at 5000 pounds over 48 months (this is to go towards a car).

Let me know if there's any info i've missed off.

Amish87

Oh also with my bank account i have a 1000 pound interest free overdraft which i've never gone over. I generally just use the overdraft for putting money in my ISA (but obviously that doesn't show up on a credit check)!

Tixy

Your income is fairly low and that might well be why sainsburys declined your application.

When you did the nationwide soft search did it ask for your income (I can't recall if it does), if it does then hopefully you would be accepted. If it didn't then it might still turn into a decline.

somethingcorporate

I would say you are borderline for approval given you already have £1k available in credit (overdraft) and are looking for another £5k and your wages are <£11k a year.

Do you need a car now? just thinking of your age you may find in May that your insurance costs would fall considerably so rather than locking yourself into a high premium now you could wait until May and get a considerably better deal.

£5k to spend on a car when you are on minimum wage seems like a daft idea to me by the way.

kuohu

I appreciate this doesn't answer the question you asked, but that's a hell of an expensive car for someone on 200 quid a week.

Amish87

Tixy wrote: »

Your income is fairly low and that might well be why sainsburys declined your application.

When you did the nationwide soft search did it ask for your income (I can't recall if it does), if it does then hopefully you would be accepted. If it didn't then it might still turn into a decline.

It asks for monthly income after deductions.

Do you need a car now? just thinking of your age you may find in May that your insurance costs would fall considerably so rather than locking yourself into a high premium now you could wait until May and get a considerably better deal.

£5k to spend on a car when you are on minimum wage seems like a daft idea to me by the way.

I already have a car but unfortunately it's 11 years old and near the end of it's life. I like to think i'm quite good with money, and if i didn't think i could cope with repayments etc then i wouldn't bother, but i can understand where you're coming from. Really need to start looking for a new job...

Amish87

kuohu wrote: »

I appreciate this doesn't answer the question you asked, but that's a hell of an expensive car for someone on 200 quid a week.

Ermmm...that's just the loan, i have savings going towards it as well. Looking at post 2008 fiestas.

I know my cut off point loan repayment wise so if they're over that point then i'll be having a re-think! Might wait another 6 months to be honest, see how the job search goes.

LovelyLeeds

Amish87 wrote: »

Hi,

I've just done a soft check for a loan with Nationwide.

If Nationwide are considering you in principle, then you have a reasonable chance of getting a favourable loan, just check before you sign, that any increase in the 8.9% is still do-able. Do your sums, and don't have an 'oh well - it's only another £*** a month'; over the duration of your loan it can be huge.