Apr increase

Lewigreg081281

I'm just searching about atthe moment for a low rate loan. I don't usually get them and have some money saved but we now need a second car due to job circumstances.

It's going to be a car we keep for a number of years. Anyhow I've applied for 2 loans now and been accepted but the apr's advertisied at 5.1% have come back 9%+.

I'm frustrated because I believe it leaves a mark on our credit report :-( obviously I don't want to be paying that.


The amount was 10k over 5yrs. We both have decent jobs and don't really have a lot of outgoings but have 2 properties one of which we rent out. Could this be it? Or the term of the loan?

Any tips? I'm worried now as we have a good credit record but I obviously want a lower apr. I've done a single app and joint the joint came back 8.9% and single 9.5%!

We are going to ideally need a car within the next 3 weeks. And I don't want to get a runaround only to loose money.

Thanks

gb12345

Lewigreg081281 wrote: »

I'm just searching about atthe moment for a low rate loan. I don't usually get them and have some money saved but we now need a second car due to job circumstances.

It's going to be a car we keep for a number of years. Anyhow I've applied for 2 loans now and been accepted but the apr's advertisied at 5.1% have come back 9%+.

I'm frustrated because I believe it leaves a mark on our credit report :-( obviously I don't want to be paying that.


The amount was 10k over 5yrs. We both have decent jobs and don't really have a lot of outgoings but have 2 properties one of which we rent out. Could this be it? Or the term of the loan?

Any tips? I'm worried now as we have a good credit record but I obviously want a lower apr. I've done a single app and joint the joint came back 8.9% and single 9.5%!

We are going to ideally need a car within the next 3 weeks. And I don't want to get a runaround only to loose money.

Thanks

The 5.1% APRs are the lender's headline rates for their ideal customer. For some reason (known only to the lender) you do not fit that profile, and are therefore being offered a higher rate.

The more applications you put in the worse the effect is going to be on your credit history and you will gradually find those 8.9% and 9.5% APRs being replaced with 11%+.

If I was you and you really need the loan for the car then I would take the 8.9% while it is still on offer.

DCFC79

The 8.9 rate isn't too bad, get it whilst you can.

happycamel_2

If you've two good jobs and a rental property then you've got reasonable income. Can you cut back on expenditure for a few months and buy a cheap car? Then save up and buy a better one. You'll avoid the risk of needing enough income to service the debt for the next 5 years and you'll save all that cost of interest.