Sainsbury's Bank Loan

Smoogan

Hello,

Last Friday I applied for a 10k loan through Sainsbury's bank. After not hearing anything from them (email/post/calls) I phoned them yesterday to ask the status of my loan which they replied "It's with the review team and it takes 5 working days".

This morning I received this email -

"Thank you for applying for a Sainsbury's Bank Loan.

We're pleased to confirm that your loan application has been approved in principle and we have sent your loan agreement to you, by first class mail.

Please ensure you read your credit agreement carefully before accepting the terms of the loan offer we have made, as your interest rate could be higher than the rate you applied for based, on our assessment of your loan application.

When you receive your documents, please read, sign and return them to us as soon as you can. The sooner we receive them, the faster we can get your money to you."

I know they are saying "approved in principle" but what was they reviewing over the last 3/4 days? Will they still carry out any further checks or is it just a case of me returning the paperwork, them processing it, etc?

Just to explain my finances -

• I earn 55k a year.
• 3k Credit Limit with NEXT (£0 balance)
• 13k Credit Card with Barclays (Normally £400-£600 a month but pay this in full each month)
• 5k Credit Card with Santander (£750 interest free, but I'm paying between 200-400+ off a month)
• No existing loans or history of any
• Only negative on my credit file - I was overdraw (unauthorised) over 4 years ago on an old bank account

Thanks

andyfromotley

i'm guessing that they have done your checks and you have been accepted. You need to check the APR on the paperwork as they may well have bumped you higher.

orionmoo

Yep, I just applied and was accepted in principle too for a £5,500 loan from them. The APR was bumped up to 7.9% on the paperwork though (instead of 6.9% I think it should've been)

[Deleted User]

They probably just had a backlog of applications.

I applied at 4.0% and was offered 8.1% on the paperwork (last August).

Becka38940

I believe most loan companies use this phrasing to make sure they are covering themselves were anything else to come to light!

I had this myself and the loan went through fine, I got 6.1%APR

Smoogan

I got the letter today and was offered 7.7%. My question is, am I now fully approved or do they carry out further credit checks?

Is it just a case of them now processing the loan on return or will they do further checks now?

BrassicWoman

why, did you do something bad in the intervening week??

Relax. If nothing changed, you'll be fine.

Smoogan

BrassicWoman wrote: »

why

The only reason is because on the finance agreement its says the following:

"You will receive the loan after this agreement is signed by both you and us and after all relevant credit checks have been completed, we will pay the loan amount into your chosen bank account as stated on your application or if requested by cheque".

So my question still stands, have I already passed the credit checks and its just a case of signing the credit agreement and returning it. Or do they do the credit check on return of the agreement? They took 5 days to "review" my application so I was under the impression this was carrying out credit checks. But the wording on the letter says otherwise.

Thanks

[Deleted User]

They searched my credit file the day I applied and again the day after I applied. No more searches after that.

MysteryMe

I think it is just routine, Tesco do the same.

K1979

I'm lost with this whole thing, have a good job so decide I want a new car, get accepted online in principle at the 3.8% rate it showed with it showing my monthly repayments for 14k. Then get the paperwork but it's dearer than my bank at 9.2%. What's going on? As far as I know I've no credit problems.