Turned down for preferred loan rate due to recently changing bank

Finleys_Dad

Hi, I dont know if anyone can give me some advice. Just spoken to M and S Underwriters concerning an appplication for a personal loan which they offerred at the rate of 9 % instead of the advertised rate of 6%. The reason given was that we have changed bank accounts in the last three months and also took out an additional credit card last year.

The credit card was to provide a short term 0% loan which has now been paid off and that account is not used (although it might still be open) and I changed current account because Santander started charging more and I opted for the Co-op account with £200 incentive for changing.

I am now thinking that I could apply to Tesco as their headline rate is 6.1% but concerend I will get knocked back in the same way. Is there anything I can do eg is there a period of time which they will expect me to have the new account for or should I close down the Credit Card and the old Current Account(it has £4.5K overdraft facility)? Any advice greatfully received.

Tixy

Even if you close down the card and old current account and wait 6weeks or so for that to be reflected on your file you might still only be accepted at a higher APR than the representative rate.
They only have to give the representative APR to 51% of successful applicants and its impossible to know who else is likely being accepted for the loan and whether they would be perceived as lower risk or more financially stable than you.

You could try applying to tesco though they will also now see your M&S recent loan application as well on your file. Doesn't hurt to try. But if they do decline your application or only accept you by offering you a higher rate then I would not make any more applications for a while. Its generally advised to have no more than 3-4 credit applications in a 6month period.

DCFC79

The M&S 6% apr is only available to something like 51% of people who fit the right criteria.

KingElvis

The recent seraches will be taking their toll too.

Finleys_Dad

Just for interests sake. I checked our records on Equifax and all was well as expected. DId an appplication to Tesco and it was accepted straight away on the phone for the preferred rata(had to wait for M+S). My suspicion is that M+S are operating a quota of customers that they wanted and they had run out of our profile at the preferred rate. I would be interested at some stage to know in more detail how these things work but meanwhile I have to get on and get the Conservatory built!

Thank you to all who took the time to reply.

z80

Finleys_Dad wrote: »

Just for interests sake. I checked our records on Equifax and all was well as expected. DId an appplication to Tesco and it was accepted straight away on the phone for the preferred rata(had to wait for M+S). My suspicion is that M+S are operating a quota of customers that they wanted and they had run out of our profile at the preferred rate. I would be interested at some stage to know in more detail how these things work but meanwhile I have to get on and get the Conservatory built!

Thank you to all who took the time to reply.

Hello - I have sent you a private message as I'm in a similar position to you (not offered the 6% by M&S) and just wanted to compare financial circumstances etc if possible - I realise you may not wish to put this info in the forum though, so I sent the PM.

z80

Update: Finleys_Dad - No need for the info I requested - I applied for the same loan amount from Tesco and the loan was accepted straight away at the advertised rate of 6.1%

So it does look like M&S are best avoided at the moment as you can get much better rates elsewhere.

Saints2011

Only 51% of people will get the rate that is advertised its quite simple, you simply did not fall into there 51% of people. As already said above a few times.