Avoid clydsdale bank loan

steven5watson

Hi all, I have several cards I wanted consolidated into one loan, and thought I would give Clydesdale a try as recommended by Money Savings Expert on the last flyer email. I applied for the 4.4 rate which was advertised, and after I finished my application they informed me I had been successful! And the loan APR they could offer me would be 23.9%!!!! that made my loan total repayable £17,741 instead of the original £12,551 I was originally going to be repaying over 4 years. This is absolutely disgusting. My credit rating isn't perfect but it's not bad either so I was astounded at the jump in APR. I called Clydesdale to ask them what their reasoning was for the astronomical APR, but they just said they couldn't discuss it and that it was based on my circumstances. Is it any wonder the country is in the financial state it's in when companies like this are obviously screwing the more financially venerable of us!!

[Deleted User]

It's to be expected. When you're looking for a consolidation loan, you're almost certain to be a higher risk customer.

iolanthe07

They only have to offer the headline rate to 51% of successful applicants. Only those with a perfect credit rating and with a very low debt to income ratio will qualify.

Gaz83

steven5watson wrote: »

Hi all, I have several cards I wanted consolidated into one loan, and thought I would give Clydesdale a try as recommended by Money Savings Expert on the last flyer email. I applied for the 4.4 rate which was advertised, and after I finished my application they informed me I had been successful! And the loan APR they could offer me would be 23.9%!!!! that made my loan total repayable £17,741 instead of the original £12,551 I was originally going to be repaying over 4 years. This is absolutely disgusting. My credit rating isn't perfect but it's not bad either so I was astounded at the jump in APR. I called Clydesdale to ask them what their reasoning was for the astronomical APR, but they just said they couldn't discuss it and that it was based on my circumstances. Is it any wonder the country is in the financial state it's in when companies like this are obviously screwing the more financially venerable of us!!

They only have to give an advertised APR to 51% of successful applicants. This is common knowledge. It's highly unlikely that anyone with a less-than-flawless credit rating would get an advertised APR on a consolidation loan - because the bank have no guarantee you'll use the funds to actually consolidate and not get yourself into further debt.

jobdone1

I have been tarting my loan for a couple of years it started out at 11.8% for a loan of £14900. The tarting process is after my loan to wage ratio got better i got a better rate kept the same terms and amount borrowed and as a result has rewarded me with excellent credit rating from average to being granted a loan from this said bank for the 4.4%. Sometimes you have to start some ware and change things as things improve worked for me.

dealer_wins

steven5watson wrote: »

Hi all, I have several cards I wanted consolidated into one loan, and thought I would give Clydesdale a try as recommended by Money Savings Expert on the last flyer email. I applied for the 4.4 rate which was advertised, and after I finished my application they informed me I had been successful! And the loan APR they could offer me would be 23.9%!!!! that made my loan total repayable £17,741 instead of the original £12,551 I was originally going to be repaying over 4 years. This is absolutely disgusting. My credit rating isn't perfect but it's not bad either so I was astounded at the jump in APR. I called Clydesdale to ask them what their reasoning was for the astronomical APR, but they just said they couldn't discuss it and that it was based on my circumstances. Is it any wonder the country is in the financial state it's in when companies like this are obviously screwing the more financially venerable of us!!

The rate they are offering you will match your credit worthiness.

If they lend to 100 steven5watsons, they would expect a higher than average default/non payment ratio than lending to 100 people who have an exemplary credit record.

The higher APR reflects this and will still allow for a profit overall.

Its actually a very sophisticated and accurate system. Take the extreme example of payday lenders. They accept many very high risk applicants, and have a lot of defaults/non payers. But the 1000%+ APR still makes lending profitable overall.

Pixie5740

steven5watson wrote: »

Hi all, I have several cards I wanted consolidated into one loan, and thought I would give Clydesdale a try as recommended by Money Savings Expert on the last flyer email. I applied for the 4.4 rate which was advertised, and after I finished my application they informed me I had been successful! And the loan APR they could offer me would be 23.9%!!!! that made my loan total repayable £17,741 instead of the original £12,551 I was originally going to be repaying over 4 years. This is absolutely disgusting. My credit rating isn't perfect but it's not bad either so I was astounded at the jump in APR. I called Clydesdale to ask them what their reasoning was for the astronomical APR, but they just said they couldn't discuss it and that it was based on my circumstances. Is it any wonder the country is in the financial state it's in when companies like this are obviously screwing the more financially venerable of us!!

Another, better and most likely cheaper option for you to get rid of your CC debt would be to snowball your debt.

If you use the snowball calculator (see link below) then you might be surprised how quickly you can pay off your debt without consolidating.

http://www.whatsthecost.com/snowball.aspx

Wilkins

steven5watson wrote: »

Is it any wonder the country is in the financial state it's in when companies like this are obviously screwing the more financially venerable of us!!

Unfortunately, you are just not venerable enough.:)

iolanthe07

Wilkins wrote: »

Unfortunately, you are just not venerable enough.:)

Love it! Not being an Archdeacon, he might be vulnerable!