Loan Processing Times - Tesco vs. Sainsbury's

dsab

Hello Everyone,

we are planning to apply for a loan with either Tesco or Sainsbury's, and were wondering which of those has these days the quicker turnaround times, i.e. from application to payment. Do they provide instant decisions? Any recent experiences?

Thanks,
dsab

P.S. We are aware that our own Bank might be quickest, but their Rates unfortunately are not very good.

jonesMUFCforever

What is your credit rating like and how much are you looking to borrow?

Tesco and Sainsbury tend to cherry pick customers and only a minority will get the headline loan rate.

Tixy

There shouldn't be much in it in terms of how quick you might get a loan if accepted.

For both Tesco and Sainsbury's some get instant decisions (acceptance or decline) and some get referred and take longer.

For either occasionally people will be able to send in a supporting documentation or identity verification information, others won't be asked for that and will get the money paid to them within a few days of the application and acceptance.

dsab

jonesMUFCforever wrote: »

What is your credit rating like and how much are you looking to borrow?

Tesco and Sainsbury tend to cherry pick customers and only a minority will get the headline loan rate.

We are looking for £8000. Credit Ratings are fine, without any negative marks. We both have one CC each that gets paid off in full each month and one IKEA (Interest free) loan with one payment of around £70 remaining. Combined income of around £75K.

jonesMUFCforever

Have you applied anywhere yet?

dsab

jonesMUFCforever wrote: »

Have you applied anywhere yet?

No, haven't applied yet. Planning to do that over the weekend.

james231287

jonesMUFCforever wrote: »

Tesco and Sainsbury tend to cherry pick customers and only a minority will get the headline loan rate.

This is rubbish - to advertise a typical APR on any credit product (cards, loans etc.) at least 51% of successful applicants must be offered this rate - or in other words, the majority.

I design credit pricing strategies for a major UK bank.

jonesMUFCforever

I have only looked at Tesco website it seems to me anyway they are covering themselves by quoting a ''representative'' rate and then ''The interest rate offered will depend on the amount you wish to borrow and your individual circumstances. Loans available to UK residents and over 18s only. Subject to status.

How do you know if the majority are offered the lowest rate/ Do you think Tesco will tell you>?

izools

Nationwide are currently the only lender who do a soft search during the application and display the actual APR you WILL get based off the soft search, and they only leave a footprint if you proceed with the application accepting the APR.

Last Nationwide loan I applied for didn't need to go to underwriters nor did it require any documents to be sent in. The loan funds appeared in my account the next day.

If you don't bank with them the same can apply but it takes 3-5 days for the funds to transfer.

Good luck!

mambo69

You have gross pay of 6250 and need a loan of 8000? could you not just make some savings somewhere save £800 a month and in ten months you have the money?

james231287

jonesMUFCforever wrote: »

How do you know if the majority are offered the lowest rate/ Do you think Tesco will tell you>?

I agree that providers who are not so-called 'retail banks' do require a greater affordability ratio (they do only accept particularly credit-worthy customers) as their margins are made from groceries and other services, hence why their lending rates are generally better than retail banks).

If you read the consumer credit act it details the rules in there (even how large the APR has be displayed, such as being more bold and 'prominent' than the other text promoting the loan). Tesco will be required to evidence to the FSA that they have offered at least 51% of customers (who are accepted) that rate - or they will be forced to remove it.