Northern Rock 6.2% APR

GraceJelley

I applied for this low cost loan as it is so competitive only to be told that my application was successful but with an APR of 8.9% which is far less competitive! The representative that I spoke to recommended that I look at my Equifax report to find out what was adversely affecting my credit. I paid £16 to do this only to find that my report said my credit was excellent. The one thing that might jeopardise it is the credit check done on my account by Northern Rock to offer me this loan that I don't want at the rate I have been offered it at! Is there anything I can do?

Northtim

I had similar, got approved at 7.4%. Not as bad as you and still better than my bank who are 8.9% typical.

My credit rating is very clean - maybe too clean.

Also have a slight suspicion that with interest rates rising this 6.2% typical rate may be coming to an end so maybe not so many are getting accepted at that low rate now. Not sure what % have to be approved at the typical rate?

mrmajika

GraceJelley wrote: »

I applied for this low cost loan as it is so competitive only to be told that my application was successful but with an APR of 8.9% which is far less competitive! The representative that I spoke to recommended that I look at my Equifax report to find out what was adversely affecting my credit. I paid £16 to do this only to find that my report said my credit was excellent. The one thing that might jeopardise it is the credit check done on my account by Northern Rock to offer me this loan that I don't want at the rate I have been offered it at! Is there anything I can do?

The way banks do their credit scoring is a complete mystery. I work for a high street lender and don't completely understand it!

Things that could lower your credit score can be your age, how long you have been in the uk, how long you have been at your current address, how long you have banked with your bank. People tend to forget these and just think that things such as a good history and other debts are the be all and end all.

It depends what emphasis the particular lender puts on each piece of information. It could be because you are, for example, young and only been with your existing bank for 1 year then you are seen as slightly higher risk and so offered a slightly higher rate.

One search on your credit file won't do it much harm. And to answer your original question about - is there anything I can do ... no - not really !

Hope This Helps