Loan Interest Rate Frustration

Mythek1

Hi
I hope someone can advise me.

I am buying a car with £6000 deposit and need an extra £3300 on finance.

I applied online for a Hitachi Personal Loan which boasted 9.9 apr on a 48 months term. But on being offered the loan, it had shot up to 19%! I contacted them for a reason but they were a bit vague and were asking for photo id and bank statements.

My credit rating is around 775, (not higher because we moved house 4 months ago and although the Council has submitted the Electoral Roll, it has yet to filter through to the Credit Agencies).

Is the amount I'm asking for attracting punitive interest rates or are other factors involved?

Thanks in advance.

ps Motonovo Car loans offered me 15% on the same terms.

Apples2

This bit should have caught your eye when looking at the car loans section

4.8% APR Representative* on loans between £7,500 and £10,000 over 24 to 48 months

http://www.hitachipersonalfinance.co.uk/car-loan/

DCFC79

Your score of 775 is useless as lenders dont see it, your have £6k which is a decent amount to buy a used car and am pretty sure you can get 1 using the 6k, you won't have any monthly repayments and the money you would have used to pay the loan off you can pay into another bank account and use for mot, service, new tyres etc etc.

Mythek1

Apples2 wrote: »

This bit should have caught your eye when looking at the car loans section

It certainly caught my eye. But when using the slider, the rate only increased to a reasonable 9.9% for the £3300. But I guess that's how they suck you in.

Thanks for the reply.

Mythek1

DCFC79 wrote: »

Your score of 775 is useless as lenders dont see it, your have £6k which is a decent amount to buy a used car and am pretty sure you can get 1 using the 6k, you won't have any monthly repayments and the money you would have used t pay the loan off you can pay into another bank account and use for mot, service, new tyres etc etc.

Of course you are right, but having reached my 50th birthday I wanted something a little more adventurous. I have been driving the same City type car for 12 years and wanted the A to B to be a little more :eek: . Not that sensible a decision, granted, but you're a long time dead...unless you believe in reincarnation, (there must be a pun in there somewhere.

Thanks for taking the time to reply.

R_P_W

Mythek1 wrote: »

It certainly caught my eye. But when using the slider, the rate only increased to a reasonable 9.9% for the £3300. But I guess that's how they suck you in.

Thanks for the reply.

You still not seen the word beginning with R?

Mythek1

R_P_W wrote: »

You still not seen the word beginning with R?

'What does representative rate mean?

Where credit cards or loans use a representative APR, this means 51% of successful applicants will be given the stated interest rate.

If a loan is advertised as being 7.5% representative APR, this means 51% of accepted applicants have to get 7.5%. Up to 49% could get a different rate (which is likely to be higher).

Of course, some people will be rejected outright'.

:beer: