Loan Application

Ginge1234

Hello,

I am looking to get a loan to buy a car. My credit rating should be good with a sound history.

I have applied for a loan today with an advertised rate and despite having my application accepted the interest rate given is not something I want to proceed with.

As a result, does anybody know why the rate offered is so different to the advertised rate and will this application impact my credit rating and any future applications to alternative lenders?

Many thanks in advance.

Ginge1234

Quimoi

Lenders only have to give the advertised rate to 50% of successful applicants. There is obviously something in your credit file or other details (e.g. income) which doesn't fit their 'perfect' criteria. It won't be anything too terrible otherwise you would probably have been declined but nobody except the lender themselves could tell you the exact reason.

It will show as a search on your credit report which other lenders can see. One recent search isn't a big deal but having 'a few' in quick succession looks bad and will reduce you chances of being accepted by other lenders.

Ebe_Scrooge

The headline rate is given to 51% of customers. If your credit history is less than perfect, or your credit profile doesn't fit their particular requirements, then you'll be offered a rate that they decide. Take it or leave it.

A personal loan with your own bank is often a good starting point, but shop around. If you've got a decent credit history then you should be able to get a good deal.

boo_star

Ebe_Scrooge wrote: »

The headline rate is given to 51% of customers. If your credit history is less than perfect, or your credit profile doesn't fit their particular requirements, then you'll be offered a rate that they decide. Take it or leave it.

A personal loan with your own bank is often a good starting point, but shop around. If you've got a decent credit history then you should be able to get a good deal.

Essentially this.

You have no history of responsible borrowing so a (responsible) lender has said no.

That's perfectly understandable and something most people have been pushing for.

Get some credit (overdraft/mobile phone contract) and give it a year or two.

Dabooka

boo_star wrote: »

Essentially this.

You have no history of responsible borrowing so a (responsible) lender has said no.

That's perfectly understandable and something most people have been pushing for.

Get some credit (overdraft/mobile phone contract) and give it a year or two.

The OP states they have a sound history not no history?

That suggests to me they do have a record or credit agreements