Interest rate advice

Cheers

Does anyone knowledgeble about loans know why Tesco someome would only offer someone a 3.4% interest loan at 12.8% interest when that person has paid every monthly credit card balance in full in their total 6 month credit history?

[Deleted User]

Many reasons.

Lack of credit history.
Affordability
Total available credit
Past credit history
Excessive number of recent credit applications
Financial associates
Not on electoral roll
Sufficient numbers of customers already received 3.4% loan.

and so on.

Gaz83

Probably because a 6-month credit history means diddly-squat. It's a very short time, relatively speaking.

SeanG79

It's a rate for risk assessment, they obviously view you as creditworthy, but a higher risk than will fit in with their "lowest" risk customers

andyfromotley

The dry answer is that they consider you a higher risk than those who get the lower rate.

The real answer is that you, i nor anyone else will ever know!! Its a pointless game second guessing them. It might be worth doing some soft searches with specific lenders, for example my bank FD show me the rate they are prepared to offer me when i use their calculator.

Lots of people on here having the same difficulty with Sainsburys Loans at the mo. My own personal view is that they tend to be inundated with people who qualify for the cheapest rate initially and they have simply lent out the 51% at the cheapest rate. It then makes no sense whatsoever for them to lend to anyone else at this rate, no matter what their credit history. But as i said none of us know.