Loan - who to apply to

John424

Hi,

How do you ascertain which lender to approach for a loan? If you go for the best rate and get rejected then does this have a knock on bad effect for other applications? I'd hate my credit file to be littered with rejected applications. My credit score, last time I checked, was very good, not sure why it wasn't 100% though as I have never defaulted in my life and always paid off credit cards in full on time.

John.

gb12345

John424 wrote: »

Hi,

How do you ascertain which lender to approach for a loan? If you go for the best rate and get rejected then does this have a knock on bad effect for other applications? I'd hate my credit file to be littered with rejected applications. My credit score, last time I checked, was very good, not sure why it wasn't 100% though as I have never defaulted in my life and always paid off credit cards in full on time.

John.

Multiple applications in quick succession will have a negative impact on your credit history as each will result in a search (unless you go for someone like Nationwide who do a soft search).

No one can really tell you who to apply to as all the lenders have their own criteria for who they will accept and what APR they will offer. A good start might be to do an application on Nationwide and see what rate they offer you, as this will not appear on your credit history.

And forget about your "very good" credit score - the lenders don't see it and it doesn't take in to account many of the bits of info that the lender will use to consider your application (such as salary, amount of debt, amount applied for etc).

DCFC79

Well first thing to do is forget the " very good credit score " as the number is meaningless. Try your own bank if you have a very good relationship with them or try nationwides soft search. Maybe read the " choosing the right loan " here.

John424

except Nationwide takes you through the loan application and then crashes due to a technical error, twice in two weeks???

kinh

Best bet is to try with your own, main bank.

John424

Why pay 8% when I can try for 5%+ ?

gb12345

John424 wrote: »

Why pay 8% when I can try for 5%+ ?

And then find that you don't qualify for the 5% and find that the 8% has changed to 11% because of recent loan serches on your file.

michael1983l

You should pick 3 loans and put them in priority order. First loan with the best rates, second loan not so great and 3rd from your bank.

You can have 3 searches without much affect but if you fail on all 3, it will be subprime or wait 6 more months until you should apply again.