Help with Tesco Loan

Apples2

The APR on this silly loan is actually pretty irrelevant.
This couple were not consolidating, they were using it for a purchase study course) so they had already decided they could take on an extra £10k of debt.

Over 5 years the monthly repayment difference between 5.1% and 16% is about £40 so neither here nor there, certainly nothing which leads to those figures in charges.

This is a more deep seated complaint about their own poor decisions they made in the past.

I do still wonder where the oney went

PandaPDQ

I borrowed £6000 from Tesco's and had to pay back just over £8000...and they wouldn't let me pay it off early, I'd never do it again.

Peelerfart

When you settled the tesco loan,did you have to pay back the clubcard points or did you get to keep them?

kws

gb12345 wrote: »

Interesting that in the space of 4 days, he has not only applied for and been accepted for a loan at 5.1%, but has also received the money and paid off the other loans.

I would be interested to know who this loan is with. My bank have told me that I am eligible for their best rate and that I can receive the money in about a week. So if someone can offer me a lower rate and pay me sooner, I'd like to know who it is.

I earn c. £55,000 have a credit card with a £2,000 limit that I use and clear every month - no other credit apart form mortgage and mobile contract (had loans in the past couple of years but paid off now).

kws

Space_Monkey wrote: »

It's one of the one's on moneysavingexpert page. I read up and it seems if you always pay off your debts on time, this can actually lower your rating. I think the fact my partner had bank charges might have worked in his favour. We did it online and didn't hear anything more, then letter came through a few days later saying the money had been paid in. Maybe try it just to see what rate you can get elsewhere, you don't have to go through with the loan until you know the rate.

So which company is your loan with then? I don't want to apply to loads of places as I have heard that can have a negative impact on credit score.

gb12345

Space_Monkey wrote: »

It's one of the one's on moneysavingexpert page.

What a strangely evasive answer .

If someone asked me the name of the company that had provided them with such good service, I would be more than happy to tell them.

Space_Monkey wrote: »

I think the fact my partner had bank charges might have worked in his favour.

And I can assure you that having had bank charges won't have worked in his favour - quite the opposite as it shows poor financial management.

Space_Monkey wrote: »

We did it online and didn't hear anything more, then letter came through a few days later saying the money had been paid in. Maybe try it just to see what rate you can get elsewhere, you don't have to go through with the loan until you know the rate.

The timescales still don't add up :cool:

On Friday afternoon -

we are trying to cover the two loans, one of 6500, one of 3500, both of around 16% apr, to one of 10000 at 5.1%.

I assume the word "cover" is meant to mean "convert", so it looks like at that stage you had not been accepted for the loan.

Then a few days later you get a letter saying that the money had been paid in. There were very few days between Friday afternoon and Tuesday afternoon and two of those were the weekend.

And even better, having received said letter, you have managed to contact HSBC and Tesco, get settlement figures and pay the loan off.

The sweet smell of the countryside still seems to be lingering around this thread.:rotfl:

kws

Space_Monkey wrote: »

No, I actually meant cover that time. I didn't say he applied on Friday. Have you actually read and absorbed anything I have written?

Can't quote the bit I wanted to as for some reason you stuck it in the middle of someone else's quote so it doesn't appear here.

So, if I apply to your mortgage company's parent company I might get a 5.1% loan in 5 days. Thanks, that is a great help - now if only I knew which company that was - I can see what these other posters are saying about you being evasive.

I asked a simple question, is it so difficult to say we got the loan with XYZ.

Also, I'd be interested to see where it mentions bank charges being a good thing my wife has had loads on her personal account and keeps apologising saying that is ruining my chance of getting a loan. I don't think she is right though as my credit score is over 900, so I'm a ideal customer.

IainHL

gb12345 wrote: »

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I'll answer your second question for you though since I know the actual answer. Current accounts do not appear on your credit report, so other lenders would not know that you have incurred bank charges.
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Actually current accounts do appear on your credit report if you have an overdraft facility on them. Or to be more precise NatWest and Halifax current accounts appear on Experian.

However, you are correct in that other lenders viewing your report would not know that you had been incurring charges, they would just see the amount of the overdraft and the markers indicating whether or not you were maintaining it below the limit.

gb12345

IainHL wrote: »

Actually current accounts do appear on your credit report if you have an overdraft facility on them. Or to be more precise NatWest and Halifax current accounts appear on Experian.

However, you are correct in that other lenders viewing your report would not know that you had been incurring charges, they would just see the amount of the overdraft and the markers indicating whether or not you were maintaining it below the limit.

You are right - I missed the key word "charges" as they will never appear on your report.

kws

gb12345 wrote: »

I wouldn't expect a helpful answer - it will be too difficult for Spacedout Monkey to come up with convincing answers to either of your questions, so they'll probably just give another evasive answer.

So it would seem. It would appear that they have now had a sulk and removed all the posts detailing how their partner got the wonderful loan. Ah well, back to the drawing board and continue the research.

gb12345 wrote: »

I'll answer your second question for you though since I know the actual answer. Current account charges do not appear on your credit report, so other lenders would not know that you have incurred bank charges. If you applied for a loan with the bank that the current account was held with then the bank may factor that into their calculations - some do, some don't. Also, as you are talking about your wife's account, it would also depend on whether you are financially linked or not (i.e. have a joint account or mortgage).

That is even better then. Our mortgage is in my name as I had the house before we married and I checked all 3 credit agencies and our joint current account doesn't appear (no overdraft), so it looks like we're not linked.

gb12345 wrote: »

ETA: Forgot to say - ignore the 900+ score on the credit report. It is a meaningless number that the credit agencies give you - it means nothing to your chances of being accepted for a loan.

That is interesting to know, so what purpose exactly does the credit score serve?