Nationwide 'soft search' 11.4%

Chelsea1979

Hi everyone

Im currently trying to consolidate my credit cards into a three year loan for £10,000. Ive been quoted 11.4% by Nationwide soft search and have a few questions. How likely am I to get the 11.4% the soft search suggests, and is this an OK rate? I do have another loan with them that is half way through the term, do all my banking with them.

If I decided to apply for a different loan today and was refused would this affect the chances of the Nationwide one being accepted?

I am not sure what to do - I am tempted to apply for this but was hoping for a slightly better rate.

[Deleted User]

whats your income to debt gearing?
11.4% isnt bad but their is potentially better avaliable

Xiderpunk

11.4% is a terrible rate, especially for a 10k loan over just three years. I would not consider anything above 6%.

Sainsbury's currently have a 10,000 loan over three years at 5.1%. Try a few more, shop around.

bigadaj

Xiderpunk wrote: »

11.4% is a terrible rate, especially for a 10k loan over just three years. I would not consider anything above 6%.

Sainsbury's currently have a 10,000 loan over three years at 5.1%. Try a few more, shop around.

Brilliant, you have no idea of the OPs circumstances but can guarantee that loan I suppose. Shopping around for more than a couple of quotes and the rates will start rising. The saints bury rate will be offered to 51% of accepted borrowers, ie not applicants.

OP - if you post some oulline details fo your income and total debts then you might get a better idea of whether what nationwide have offered is good or bad.

BEN1987

Xiderpunk wrote: »

11.4% is a terrible rate, especially for a 10k loan over just three years. I would not consider anything above 6%.

Sainsbury's currently have a 10,000 loan over three years at 5.1%. Try a few more, shop around.

So you wouldn't consider anything above 6%?

Hmmm... so you must be one of those peeps with a bang-on Grade A credit score. But where are us plebs gonna get a loan at that rate then?

Oh yeah, you might see them advertised at that sort of rate, but few (if any) will actually get approved for low-ish rates like that. It'll be "compooter says nah". But you'd probably be ok'd for the loan..... at 9.9% or 11.4% or whatever.

As for "try a few more, shop around". Sorry but that's crap advice. I thought everybody on MSE knows that making applications willy-nilly ends up adversely affecting your creditscore and serves only to make things worse, not better. @@

Xiderpunk

The OP did not indicate that she has adverse credit history? Therefore I am just giving my opinion based solely on the rate.

Surely stoozing as suggested by MSE is an option rather than paying a large sum of money in interest.

I would not have thought that shopping around would be a bad thing. A couple of searches on your credit record can not be that harmful surely?

Apples2

Doesn't have to be adverse, for those looking for consolidation loans, it is fair to say the debt to income ratio is becoming a real problem.

Too many.outgoings steer people toward even more borrowing.

The banks know the applicant has been overspending to end up like this, hence the high Apr.
No.good shifting all that debt.into one loan but carry on using the credit.cards is it?

nardocott

As I understand it the nationwide soft search means you should be offered that rate if you accepted the loan there and then. Yes if you were declined a loan elsewhere this is likely to have a negative impact on your score (and the nationwide rate may go up).

There are better rates out there for 3 year loans at 10k (various supermarkets for example offer ~ 5.1%, maybe look at P2P as well?) but the headline rate has to be offered to only for 51% of the customers (I think it used to be 66% but has gone down) so it would be the highest credit scorers that get those rates. If you check your credit score (if you haven't already) you might get a better idea of your chances of getting a good rate.

At the end of the day you have to balance the risk of applying elsewhere and potentially saving some money with a better rate with the possibility of getting a higher rate because of the searches. Don't forget to factor in how urgently you need the money because if you can wait then doing no searches for a month or two should bring the score up again (not sure how long for about failed applications but it has to help!).

They say you can do ~ 12 searches per year without adverse results but it depends how close together they are.

Chelsea1979

I also posted for advice on the credit card forum and decided to apply and was offered the 11.4% in principle. However it has been suggested that I could apply for another now and if sucessful cancel the nationwide...thoughts?

To be honest Im not in a great position when you consider debt and earnings. Im married, earn £28k, home owner, excellent repayment history. 2 CC's (one 6.5k, the other3.5k) but half way through a loan (nationwide) with 2.5 years to run (£6k remaining over 2.5 years).

I am confident I can afford quite large repayments. My OH earns a more than me (40k approx,) but is a temporary worker so I will be applying in my sole name however I know it does not appear good to lenders. I was thinking of accepoting the 11.4% and repaying more than the minimum to get it paid off in 2 years, thus saving interest.

I just want to get rid of the debt, my OH was studying for a few years and we ran up the debts now I hate the idea of paying interest when we have a decent income between us