Personal Loan : My own bank or another?

spoila

Hi,

I am about to apply for a personal loan with either Sainburies or Santander. Both offer £15k for 4.5%.

My credit rating should be quite decent but there are a few missed credit card payments over the years.

My main bank is Barclays but I have a joint account with my wife in Santander (she has an excellent credit rating).

Do I have a better chance applying with Santander who know me better or Sainsburies?

Thanks,

20aday

spoila wrote: »

Hi,

I am about to apply for a personal loan with either Sainburies or Santander. Both offer £15k for 4.5%.

My credit rating should be quite decent but there are a few missed credit card payments over the years.

My main bank is Barclays but I have a joint account with my wife in Santander (she has an excellent credit rating).

Do I have a better chance applying with Santander who know me better or Sainsburies?

Thanks,

The advertised rate of 4.5% is available to 51% of those that apply for a loan with Sainsbury's and Santander, the other 49% who apply would get a different rate, so bear that in mind.

When you say you have a few missed payments "over the years" how long ago was the most recent one?

Do you regularly shop at Sainsbury's? Have you swiped a Nectar card within the last six months?

And finally.... how long have your account with Barclays? And Santander? Past experience (with credit cards) has taught me you stand a better chance with your own bank because of how you've conducted your account with them.

spoila

I have banked with Barclays for 10 years but don't want to take a loan with them because their rate is too high.

The Santander account is 3-4 years old.

Don't have a nectar card (that is in my wife's name).

There hasn't been a missed payment in about 4 years but there was an invoice that I didn't pay 6 months ago which was passed onto a collection agency and then paid immediately.

Understand about the 51%.

You seem to be saying that my best option is to go with Santander.

20aday

spoila wrote: »

I have banked with Barclays for 10 years but don't want to take a loan with them because their rate is too high.

The Santander account is 3-4 years old.

Don't have a nectar card (that is in my wife's name).

There hasn't been a missed payment in about 4 years but there was an invoice that I didn't pay 6 months ago which was passed onto a collection agency and then paid immediately.

Understand about the 51%.

You seem to be saying that my best option is to go with Santander.

Have you tried the following URL: https://www.moneysupermarket.com/loans/eligibility-search/ at all?

It performs a soft search which'll show "how likely" you are to get different loans; it'll show on your credit files to you, but not lenders. You'd have to conduct a full application for it to be visible to anyone else you'd try and apply to get credit with.

Missing the payment and then settling in full will go in your favour, I'd believe.

Personally I think you should try Santander, yes.

Tixy

20aday wrote: »

The advertised rate of 4.5% is available to 51% of those that apply for a loan with Sainsbury's and Santander, the other 49% who apply would get a different rate, so bear that in mind.

51% of successfully accepted applicants not 51% of those that apply.:)

Tixy

Its really impossible to say which of the 2 banks may accept you, or which may offer you the best rate.

Assuming the account with santander has been well run then I'd probably try them first.

but there was an invoice that I didn't pay 6 months ago which was passed onto a collection agency and then paid immediately.

Does this appear on your credit files? if it got as far as being passed to a debt collection agency does it show as a default on your credit file?

spoila

That looks like a very useful tool. Will give it a go. To be 100% - filling in that form has zero impact on my credit rating?

spoila

Very useful until it gets to Santander which doesn't give a probability - but all other banks are showing as about 70% + so I'll give it a try. Thanks for all your help. Will let you know how I get on.

Tixy

spoila wrote: »

That looks like a very useful tool. Will give it a go. To be 100% - filling in that form has zero impact on my credit rating?

It has no impact on your ability to obtain credit.
It will result in a soft search to your credit file, visible to you but not to potential lenders.

20aday

Tixy wrote: »

51% of successfully accepted applicants not 51% of those that apply.:)

Thank you for pulling me up!

A lot of people have helped me over the years on here so I'd like to return the favour.

Think I need to study some more before diving in at the deep end :eek: