Will 3 applications for loans in one day hurt my rating

curiosity101

I'm looking to buy a car but am getting stumped by all of the 'from 5%, from 13% adverts etc'

I know my credit rating is 'Good' rather than excellent so it's not perfect (New job and recently moved house).

I've been on all of the different loan tools on both comparison sites and loan sites. Some say I should get 13% some say it should be less.

I've had one loan accepted and the finance documents sent through with 21.6% APR! This was a little bit of a shock as I was expecting much less, and they kept their end of finance fee quiet...
Pretty much what I expected was to be spending £780 on the loan (which is still quite a bit) but in actual fact it was almost £1300

So I've now applied to two different places, both Zopa and Carfinance247.

By the looks of things Zopa seems like a good bet as it will actually be 9% APR and allows early repayment at no extra cost (which is great as our finances will drastically improve in 12 months). But I'm now a bit worried that Zopa may decline me as technically it was my 3rd application in 24 hours...

So my 2 questions are:

Are Zopa more likely to decline me now than if they'd been the first company I contacted?

and,

How can you possibly compare loans without credit checks if they need to do the check to actually give you a true %APR figure?

iolanthe07

Multiple applications do apparently adversely affect your chances of being accepted. Nationwide do a soft search that is not recorded. Remember that only 51% of successful applicants will get the headline rate, and that car dealerships have a nasty habit of quoting flat rate interest. APR is approximately double the flat rate.

curiosity101

Thanks for the reply.

I never really expected the headline rate, like I said I was expecting / ready for a rate around 13-14% APR based on my 'good' credit rating. 21.6% did come as quite a shock though.
Then with all the additional fees they added on... to borrow £4,450 for 30 months will cost £1,290 which is almost 30%

Our car is about to die though and we've just put our savings into doing up our house so finance is the only option. If I have to pay 21.6% then so be it. Just fingers crossed Zopa accept me, I don't have any bad marks or any other credit against my name at the moment (with the exception of my free student overdraft that I'm steadily repaying). It was just the multiple credit checks that have been done over the past few days I was worried about as it's definitely still not a dead cert that they'll accept me as I don't have an extensive credit history (even if it is all clean and safe).

BonkersBonkers

What does your bank have to offer?

curiosity101

On a personal unsecured loan - Lloyds offered me 20.6% APR and Natwest 19.9% APR

I'm starting to consider borrowing £5000 if Zopa turn me down as it seems to be a common threshold for a much lower interest rate.

According to Natwest loan calculator:

£4500 - total repayable £5,641.20
£5000 - total repayable £5,762.70

[Deleted User]

fairyaunty wrote: »

of course 3 loan applicatrions in 1 day is going to hurt your rating you silly numpty. looks like you are absolutely desperate for credit. HOW COULD YOU BE SO STUPID to make those applications in a single day and then come on here asking for adsvise.

When you apply in 6 months time, try not to get p1$$ed the next time.

Hang on there! The OP didn't come here looking for insults and abuse.

curiosity101

How could I be so stupid... how offensive. I take it you have never been new or in-experienced at anything ever...

If you actually read my first post properly you'd see I'm not annoyed, just a bit confused.

You can't check actual APR rates without a full application (ie. hard check) which seems odd to me.

And I was wondering if it would effect my Zopa application out of curiosity as I applied late-ish on a Friday which meant I'd have the whole weekend to wonder before getting a response.

Also... I wont be re-applying for anymore credit in 6 months time... so I don't really know why you added that...

Slayerx

fairyaunty wrote: »

Missu wrote: »

Hang on there! The OP didn't come here looking for insults and abuse.[/QUOTE


You lot on here are far too serious. lighten up for pete sake and just chill. Everything is green, you know what I mean.

You need to be more respectful of people on here.

They ask for help not people making remarks or light of their situation.

pinkbubbley

fairyaunty wrote: »

Missu wrote: »

Hang on there! The OP didn't come here looking for insults and abuse.[/QUOTE


You lot on here are far too serious. lighten up for pete sake and just chill. Everything is green, you know what I mean.

Nothing better to do with your time i see...strange

[Deleted User]

fairyaunty wrote: »

Missu wrote: »

Hang on there! The OP didn't come here looking for insults and abuse.[/QUOTE


You lot on here are far too serious. lighten up for pete sake and just chill. Everything is green, you know what I mean.

Nasty piece of work aren't you?

iolanthe07

We're supposed to be nice to newbies. Perhaps newbies would kindly remember to be nice in return.