Sainsburys Bank "low rate" loan

zxmike

After seeing a link on this site I applied for a Sainsburys Bank low rate loan. The headline rate was 4.8% with the small print suggesting the usual subject to status and 51% of our customers receive this rate.

I have a good credit history but have a reasonable amount of outstanding debt. I applied for debt consolidation in the loan category.

I was approved but offered a rate of 9.1%

When I phoned to complain I was referred to the small print. I asked however what I would need to do to get the lower rate and they said they couldn't discuss my credit profile. I suggested given a hypothetical situation, what conditions would stop the lower rate from being offered to which I got the same "can't tell you" answer.

Being cynical here this seems like a bit of a scam. Yes I know its "subject to status" but from the responses its difficult to understand if the low advertised rate is being replaced with a higher rate for the right reasons.

Do I have any grounds for complaint here ?

Thanks
Mike

[Deleted User]

No. They may have given you a higher rate due to your credit profile, or simply because they have already iisued their 51% quota of headline rate loans.

Either way, they can choose to lend to you at the higher rate, or even not at all.

TadleyBaggie

OT but...zxmike is a new user (joined today) but doesn't have the normal "be nice to newbies" icon below their name. Strange.

gb12345

TadleyBaggie wrote: »

OT but...zxmike is a new user (joined today) but doesn't have the normal "be nice to newbies" icon below their name. Strange.

He does for me.

dealer_wins

zxmike wrote: »

After seeing a link on this site I applied for a Sainsburys Bank low rate loan. The headline rate was 4.8% with the small print suggesting the usual subject to status and 51% of our customers receive this rate.

I have a good credit history but have a reasonable amount of outstanding debt. I applied for debt consolidation in the loan category.

I was approved but offered a rate of 9.1%

When I phoned to complain I was referred to the small print. I asked however what I would need to do to get the lower rate and they said they couldn't discuss my credit profile. I suggested given a hypothetical situation, what conditions would stop the lower rate from being offered to which I got the same "can't tell you" answer.

Being cynical here this seems like a bit of a scam. Yes I know its "subject to status" but from the responses its difficult to understand if the low advertised rate is being replaced with a higher rate for the right reasons.

Do I have any grounds for complaint here ?

Thanks
Mike

I have highlighted the reason why I think you wouldn't get their lowest rate.

You really need a great credit profile, stable address and employment, and not much other debt to get the best rate with any loan company.

Clive_Woody

dealer_wins wrote: »

I have highlighted the reason why I think you wouldn't get their lowest rate.

You really need a great credit profile, stable address and employment, and not much other debt to get the best rate with any loan company.

Also the bit where the OP said "I applied for debt consolidation in the loan category" may have contributed to this. To me this suggests your current debt level is unmanageable or is debt with a high APR that you are looking to get rid of.

[Deleted User]

Clive_Woody wrote: »

Also the bit where the OP said "I applied for debt consolidation in the loan category" may have contributed to this. To me this suggests your current debt level is unmanageable or is debt with a high APR that you are looking to get rid of.

Hi
My husband applied for a loan from HSBC (our bank) to consolidate non-hsbc debt. The loan was advertised as an APR from 5.9% and my husband actually got it for 5.9% ...the advisor told us that the fact we were honest with what the money was for. We are really happy that it has not only helped us tidy our finances (3 debt direct debts going out of our account instead of 6) and we would have paid a hell of a lot less interest and be debt free by November 2018. The debts that are now cleared thanks to this loan had an APR rates of 12.9% and 2 x 19.9% :eek:

StuC75

The rate is subject to how they perceive your risk to be - background and cold hard facts of what is on the credit file.. The purpose of the loan is also considered in terms of what they are 'competing' against to be competitive and profitable..

I.e. clean \ clear \ managed file - has the pick of the deals so needs to be priced to attract..

consolidation loans - clearing up credit cards and debts that are not so manageable (hence the application being made).. and they can push the rate up a touch (since you're likely to be more in need of the loan)..

TadleyBaggie

gb12345 wrote: »

He does for me.

Strange, he does for me now too, must have been a board glitch.

ChopperST

MrsBrownBear wrote: »

Hi
My husband applied for a loan from HSBC (our bank) to consolidate non-hsbc debt. The loan was advertised as an APR from 5.9% and my husband actually got it for 5.9% ...the advisor told us that the fact we were honest with what the money was for.

I'm sorry that is just rubbish. The bank's internal algorithm will decide what rate you receive based on the risk to the bank. Clearly your husband was a "good" risk and they offered a lower APR, this will be due to many factors such as income, debt to income ratio, history of paying back debt etc.

You have to be honest when applying for a loan when you state what it is for, anything else would constitute a fraudulent application. The "advisor" I'm afraid is quite wrong in this case and to post in this thread advising people that if they are honest in their application they will receive a preferential rate is quite frankly laughable...

DCFC79

dealer_wins wrote: »

I have highlighted the reason why I think you wouldn't get their lowest rate.

You really need a great credit profile, stable address and employment, and not much other debt to get the best rate with any loan company.

Couldn't have said it better myself.