Confused by Crappy APR offer ?reason

polarbear79

Applied for 13000 loan from bank offering headline rate of 5.2%

Good job, good salary (>60,000), no debt apart from mortgage.
Own a home which is rented out and rent the one we live in.
Credit card with this bank paid off every months. Previous loan with same bank never missed a payment. On electoral register at home I live in.

Application done with no problems. Informed 50% of customers receiving headline rate.

Rate offered 8.9%.

When questioned, told it must be down to a poor credit rating.

Contacted Experian - credit rating 999. Spoke to advisor, absolutely no reason for poor offer there.

Spoke to bank again. Finally persuaded them to speak to the underwriters. They say that they cannot see a mortgage payment and that I have a couple of versions of my current address (minor punctuation differences). Offer to wipe record of application and suggest I speak to Experian to fix. Can see no other reason why being offered such a high rate.

Speak again to Experian who say there is no problem to fix, it is normal to have minor errors like this and it is all obvious on credit report. Can definitely see mortgage payments on credit report. Went over like with a fine tooth comb who was shocked that I was offered such a poor rate and described me as an 'ideal loan customer'. Suggest sending them a copy of the full credit report.

Speak to bank again, no more budges. Say the decision is 'The Computer's ' and that there is no one in the company who can show discretion. Challenged this over and over again but they stuck to their guns.

Anxious about applying again to anywhere else as I don't want to start damaging my credit rating with applications.

Can anyone shed any light on what on earth is going on?

May not be the greatest customer on the earth but surely above average.

Tixy

Have you checked with the bank that they are looking at your experian report?
Have you checked equifax to see what that shows? possibly your mortgage doesn't show on that?

Informed 50% of customers receiving headline rate

This is not correct. 50% of the people who are accepted get the representative rate. Far more are likely turned down altogether.

So by being accepted at all that would likely make you an above average customer.

Perhaps consider trying somewhere else - eg nationwide have a soft search option, which doesn't appear on your file.

polarbear79

They were definitely looking at Experian not Equifax.
Thank you for the advice on Nationwide.
I wonder what you have to do to get the headline rate with Experian describing me as 'the perfect customer'???

opinions4u

polarbear79 wrote: »

I wonder what you have to do to get the headline rate with Experian describing me as 'the perfect customer'???

Apply to Experian. They're obviously keen to lend to you at knock down rates.

Aren't they?

BugsyBrowne

As above Experian seems very happy with your credit report so as above apply to them for a loan.

polarbear79

I cannot see on their website anywhere that the offer loans.

S

[Deleted User]

polarbear79 wrote: »

I cannot see on their website anywhere that the offer loans.

That's strange. I wonder why they would describe you as an ideal loan customer if they don't even lend money themselves?:think:

somethingcorporate

polarbear79 wrote: »

I cannot see on their website anywhere that the offer loans.

S

:rotfl:

Exactly the point. Their opinion on you is next to worthless.

The only opinion that counts is the one of your bank (or whoever you are asking to lend you money).

iolanthe07

I cannot see on their website anywhere that the offer loans.

Bugsybrown and opinions4u were being ironic. Credit agencies do not offer loans and their score is of very limited value. Each lender has their own criteria, and you may not fit their profile even if your score is excellent. Don't take it personally.

pheonixrising21

Tixy wrote: »

Have you checked with the bank that they are looking at your experian report?
Have you checked equifax to see what that shows? possibly your mortgage doesn't show on that?


This is not correct. 50% of the people who are accepted get the representative rate. Far more are likely turned down altogether.

So by being accepted at all that would likely make you an above average customer.

Perhaps consider trying somewhere else - eg nationwide have a soft search option, which doesn't appear on your file.

IMO, what the OP stated is correct. Over 50% of customers must get the headline rate. Those who are rejected are not customers. Only those accepted are customers, therefore 50% of customers get the headline rate. What you mean is that 50% of applicants do not have to get the headline rate. The lender can reject as many people as they want. It may be that only 1% of applicants get the headline rate, if 98% are rejected.

Also, Nationwide soft search does leave a marker on your file (well it does on mine). I got a "no obligation quotation" in June/July last year and took it no further. A search shows on my file. I got another one this month and went ahead with an application this time. Three searches show on my file now (all with the same date). Obviously, I expected one to show as I made a full application. Every other search/application I have made only shows one instance on my report!

forgotmyname

You will upset the Experian rep. Who will in one post tell you their rating system is perfect. And then go on to say lenders use a different system.

My ratings system works a lot better. Do you have more loose change in your pocket than you wish to borrow? No? Then your not the perfect customer.

Ideally they want people that dont need to borrow money. Its as close to risk free as they can hope for.

Its the ratio of money coming in and money going out that maybe the issue. They think what if you dont have someone paying the rent. What money will you have left then?