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M&S Loans
Just applied for an M & S loan by phone and am slightly regretting it.
It has been a long while since I applied for a loan and things have changed.
What annoys me is that they offer an interest rate of FROM 4.2% but then only tell you what the ACTUAL rate will be AFTER you apply for it and they trample all over your credit record. Is this standard these days?
They couldn't even give me a maximum figure that it might go up too.
I wish I hadn't done it now but I thought M & S must be reputable.
At least I have 14 days to cancel once the paperwork comes through if the interest rate is ridiculous, but it's very annoying.
It has been a long while since I applied for a loan and things have changed.
What annoys me is that they offer an interest rate of FROM 4.2% but then only tell you what the ACTUAL rate will be AFTER you apply for it and they trample all over your credit record. Is this standard these days?
They couldn't even give me a maximum figure that it might go up too.
I wish I hadn't done it now but I thought M & S must be reputable.
At least I have 14 days to cancel once the paperwork comes through if the interest rate is ridiculous, but it's very annoying.
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Comments
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Why didn't you try your own bank first?0
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they cannot assess how risky you are until they do a credit check. I am not aware of any mainstream lender than would commit to an amount and interest rate without checking you out
As a ballpark you can use total debt to income ratio of 50%, so if you earn £20k, currently have £4k of debt you may be able to get a loan of £6k0 -
'M&S Bank is a trading name of Marks & Spencer Financial Services plc which is a wholly owned subsidiary of HSBC Bank plc'
Our two loans are with M&S, with competitive rates (5.6% and 6.5%).
When I applied I have to say I wasn't greeted with the same customer service as I normally get from M&S which was disappointing as they didn't respond quickly to my need for the money - well that was until they sent over the loan to me because they sent over 2 lots by mistake - they were soon on the phone then!
That said I have had no problems since when ringing for balance information and to change my address and bank details.
I recall Sainsburys did the same with me when I was looking to take out my first loan, they were offering a very low interest rate, it was only when they had done all the checks that they came back with an interest rate higher than the 'special rate'.
Good luck with your loan application
x Starting Debt: £51,657.46 :eek: Current Debt £31,297.83 (39.41% paid off)
L1(6.5%):13,345.20/5,115.66, L2(5.6%):15,955.80/11,434.99, L3(0%):1,800/1,700, L4(0%):5,000/5,000, CC(0%):4,800/800, Sofas(0%):2,417.50/1,068.22, SL:c.£108pm
Paid off :j: SB: £1,188.00, CC(0%): 1,121.94
Loose Change Pot £101.12 Nectar Points £89.01 Savings £1,9000 -
they cannot assess how risky you are until they do a credit check. I am not aware of any mainstream lender than would commit to an amount and interest rate without checking you out
As a ballpark you can use total debt to income ratio of 50%, so if you earn £20k, currently have £4k of debt you may be able to get a loan of £6k
I don't mind the credit check of course they have to do that, I just remember the days when the rate advertised was the rate you got, not this apply first and find out afterwards thing which is new to me and I don't think really reasonable.0 -
I actually only need the loan for a short while so I'm not sure this is the best way anyway.0
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I don't mind the credit check of course they have to do that, I just remember the days when the rate advertised was the rate you got, not this apply first and find out afterwards thing which is new to me and I don't think really reasonable.
It's more reasonable than flatly refusing anyone too risky for the headline rate.
At least you can now (hopefully) get an offer without having to apply again.0 -
I don't mind the credit check of course they have to do that, I just remember the days when the rate advertised was the rate you got, not this apply first and find out afterwards thing which is new to me and I don't think really reasonable.
Okay. Look at it this way: you've been rejected for the loan you applied for at the APR your wanted, but M&S have offered you an alternative with a higher APR. 0 -
It's perfectly reasonable. In the days when "the advertised rate was the rate you got", you still had to be approved for the loan to be granted at that rate.I just remember the days when the rate advertised was the rate you got, not this apply first and find out afterwards thing which is new to me and I don't think really reasonable.
Nowadays, lending institutions just use more sophisticated means of determining whether the potential borrower is likely to be be able to repay the debt.
Exactly.Deleted_User wrote: »It's more reasonable than flatly refusing anyone too risky for the headline rate.0
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