Personal Loan % rate query. Is it all a con

reecesanford

Gaz83 wrote: »

Imagine you were a lender for a second. Who would you rather lend to:

a) Someone who has shown a consistent, responsible way of borrowing and repaying credit over short, medium and long-term;

b) Someone with no or very little credit history?

Here's a clue: if it's option b), your lending business won't last very long.

ive borrowed and had a mortgage before and paid it off.
ive had credit cards and paid them off.

Gaz83

reecesanford wrote: »

ive borrowed and had a mortgage before and paid it off.
ive had credit cards and paid them off.

So, they're not making money from you any more. And you think that 'losing your custom' is some kind of threat?!

You have two options here, sport:

a) Bite the bullet and get another credit card and start building up credit again so that you have more of a chance of being accepted at a headline rate;

b) Continue having a hissy fit at being offered more-than-headline rates, which will do absolutely no good whatsoever.

Your call

CLAPTON

reecesanford wrote: »

ive borrowed and had a mortgage before and paid it off.
ive had credit cards and paid them off.

do these show on your credit files?


and actually 9% isn't actually a bad rate

Gaz83

CLAPTON wrote: »

do these show on your credit files?


and actually 9% isn't actually a bad rate

It's not a great rate for £7,000, to be honest. But then we don't know enough of OP's situation - if he's paid off a mortgage, perhaps he's retired and doesn't have as much of an income?

Tixy

reecesanford wrote: »

ive borrowed and had a mortgage before and paid it off.
ive had credit cards and paid them off.

Having a past credit history can help to some degree, but only for a relatively short period in time.

To be able to get the best rates you need to maintain an active, current credit history.

There are other benefits of credit cards as well of course. Such as the added purchase protection and the chance to earn cashback or rewards.

But if none of these are important to you then that is your choice. As your wife has managed to sort out the current loan requirement and if you don't plan to need to take out a loan in the future in your name then you probably have no need or interest in building/ maintaining a credit history.

YorkshireBoy

reecesanford wrote: »

Ive been banking with HSBC for 10 years and need a loan of £7000 to pay for a car. Saw their rate of 3.9% and thought great thats as low as ive seen.
Did an online application and got offered 9.9% and was furious. So ive just come from a meeting at the branch near me and gone through everything again and its 9.9% again.

I'm not familiar with the finer detail of loans (I prefer to save up for things or use 0% credit cards), but haven't you got a 14 day 'cooling off' period?


Why didn't you think with your head instead of your heart, take the 9.9% loan, and repay it 2 weeks later with the 4% loan that your wife had 'in the bag'?


Even if you incurred a little interest, how many pennies would that have been over such a short timescale?


Mountain and molehill?

reecesanford

Gaz83 wrote: »

It's not a great rate for £7,000, to be honest. But then we don't know enough of OP's situation - if he's paid off a mortgage, perhaps he's retired and doesn't have as much of an income?

i paid off a mortgage several years ago after selling my house. and opened up an hsbc account with £65,000 in it because it was the best account for me when i travelled the world for several years.
and no im not retired.

Herzlos

Yet they think that (presumably) your lack of recent credit history is enough of an issue to only offer 9.9%.

I've got the headline rate on loans before, but I've used a credit card regularly for the last 12 years. Usually to pay where I might benefit from the extra protection or when I'm approaching pay day. You can do it without costing you anything.

thebritishbloke

I'm 20 and got a headline rate on a loan for a car when I was 19, would you guess how I got it? Yup, I started using credit cards from my 18th birthday and always paid it off in full.

reecesanford

Gaz83 wrote: »

So, they're not making money from you any more. And you think that 'losing your custom' is some kind of threat?!

You have two options here, sport:

a) Bite the bullet and get another credit card and start building up credit again so that you have more of a chance of being accepted at a headline rate;

b) Continue having a hissy fit at being offered more-than-headline rates, which will do absolutely no good whatsoever.

Your call

Or SPORT get accepted for a Tesco loan at 4.1%