LLYODS TSB LOAN - soft search APR = rejection?

Hunterz1_2

Hi guys, via Lloyds tsb online banking I put through a quote for a loan of 4000 for a car purchase, by doing this. It has came back with the following results. I wanted to clear the loan off within 24 months.

£4,000.00 29.9% APR
18 payments of £271.69

£4,890.42

£4,000.00 29.9% APR
21 payments of £240.07

£5,041.47

£4,000.00 29.9% APR
24 payments of £216.47

£5,195.28

£4,000.00 29.9% APR
27 payments of £198.23

£5,352.21

£4,000.00 29.9% APR
30 payments of £183.72

£5,511.60

This doesn't look good right 29.9 for a loan and that kind of APR would likely mean rejection? Correct?

I have 3 CC'S, with kinda low balances, never missed a payment, on the electrol roll, all green on credit file.

Any tips?

many thanks

BugsyBrowne

It means you have a credit policy decline on loans this month.

stephane_2

Would you really want to be paying 30% interest.....madness...

Hunterz1_2

BugsyBrowne wrote: »

It means you have a credit policy decline on loans this month.

Could you please elaborate of what you mean by this please?

stephane wrote: »

Would you really want to be paying 30% interest.....madness...

Hmmm, Yes, I need a car badly for work. I found a decent one for 5k.

BugsyBrowne

Hunterz1 wrote: »

Could you please elaborate of what you mean by this please?



Hmmm, Yes, I need a car badly for work. I found a decent one for 5k.

Just type in CPD marker Lloyds and then read through the threads.

CPD markers can be placed on accounts and removed from month to month which means you could be CPD for an overdraft or CPD for a credit card or CPD for a loan or you could be CPD 99 which is no lending on any products.

Not saying you have any of these but 29.9% for a loan does sound like you'll have one.

Macca83_2

A 29.9% interest rate on a loan with lbg is a guaranteed decline. I wouldn't bother

Hunterz1_2

Hmm, I will phone the bank up tommorrow and see if I have one on my account.

I hear people saying that every month they review your account i.e get feeds of CRA's every 21st of each month. Is this correct?

many thanks

sscott5581

Hunterz1 wrote: »

Hmm, I will phone the bank up tommorrow and see if I have one on my account.

I hear people saying that every month they review your account i.e get feeds of CRA's every 21st of each month. Is this correct?

many thanks

This is correct.

You will have an internal score with Lloyds from 1 to 9. 1 being the most highly regarded customer 9 the least. There is also a letter think it goes from A to I (not too sure), this letter represents the likely loan apr if approved A being the best rate.

The fact your personal quote came back as 29.9 suggests you have CPD against loan for the current month, as you correctly suggested this changes month to month depending on the external data from Experian.

However despite potentially having CPD against loan does not mean you would have this against other borrowing; overdraft for example.

Note - you may have an internal rating of 1 and still have CPD. Very strange system!

You can check the maximum allowable overdraft by clicking on amend overdraft, enter (silly amount eg 9000), Lloyds will either decline outright (suggesting CPD) or say we cant offer 9000 but can offer xxx.
Similarly this can be done with credit limits with Lloyds. No credit search.

Also check upgrade account, can you upgrade to any added value account, the ugrade link will show if this allowed, otherwise it will ask you to call.

Are you given the option of opening another current account when you click 'current account' if not this could suggest CPD against further current accounts.

Good luck!

rs1505

Similar story....I have an overdraft with Halifax for £11,000. They offered me this amount when I was buying a house 5 years ago (their O/D rate was then 6.9%) and the staff suggested that this was the best option than a loan. Now they do the £3 daily fee so I'm paying about £180 per month in fees - I have never defaulted this fee payment and my account has been kept in good order for 13 years with them. I asked for a loan for £11,000 to pay off the O/D over 7 year period - the payment would be £165 - I was declined even though my credit rating is good. I understand that banks need to be responsible in lending but I was only asking for a loan to pay off another Halifax debt - they could see from my account that this has been managed well. I would have thought tha banks also have a responsibility to help customers manage their debts which is what I wanted to do. Now I'll need to continue paying the monthly fee but no chance of reducing the debt. the only other option they siggested was to move my mortgage to them and take out an additional £11,000 - not really good financial advice coming from them

Hunterz1_2

Once again, many thanks for your replies. Via internet banking, I've upgraded my account to a silver account 9.95 a month, which I'm guessing goes through a credit check in order to see if I meet the requirements for one?

I haven't phoned the bank up yet to see if Ive got a CPD on my account, but again, I just did a loan for 1000 and it came back with 29.99 again which doesn't look good.

Will phone them up shortly..

stephane_2

No....a bank does not conduct a credit search for upgrading an account.