Sainsburys Bank Loan

julesemma

I did a search for an £8,000 loan on Moneysupermarket, over 3 yrs, with Sainsburys bank at 3.6% Nectar card holders. I got an email from them saying agreed in principal, we might change the apr. depending on my circumstances. I get the documents and they put the apr. at 6.7%, nearly double what was quoted.

I phoned them up to asked why, and she said to do with my credit rating. I explained I had a good rating. With my husband I own a £280,000 home with a £74,000 mortgage, he is self employed, I work full time, the loan application was in my name only. We have two credit cards, with 0 balance. She said, but what's your limit on them. I told her one is £1,500 and the other £3,000. She told me that was why, as they could give me a loan, and then I might use the limits up on my cards!! All of £4,500.
It's a con to suck you in at 3.6% then actually offer at 6.7%.

dresdendave

It's not a con, they legally have to offer the headline rate to 51% of applicants. You presumably didn't match the criteria to get that rate.

DCFC79

Couldn't have been due to your credit history as lenders can't see it hence why if you have a good credit score it doesn't guarantee you get the loan at the low Apr.

andyfromotley

Its not a con, but it is increasingly frustrating for people that they apply and then get bumped to a higher rate. Lots of people probably end up just going ahead as they have gone through the hassle and time of applying, even though they wouldn't have gone with them in the first place if they had known the true rate!!

They do have a legal duty to give half the customers the advertised rate but thats no comfort to someone like you who was bumped!! There are a lot of posts on here about sainsbury at the mo and i suspect that they have already lent the 51% at the lowest rate, so it makes no sense at all to them to lend a single penny more at that rate!! Irrespective of your credit history.

redpete

DCFC79 wrote: »

Couldn't have been due to your credit history as lenders can't see it hence why if you have a good credit score it doesn't guarantee you get the loan at the low Apr.

What DCFC means is that it couldn't have been due to any credit rating or score that you see from a credit rating agency. It could well have been due to your credit history because the lender will get reports on this from the CRAs. It could also be due to the credit rating that the lender themselves works out using criteria that they won't tell you.

paye

This is exactly what has just happened to me in the last hour. I applied for a £5k loan with santander and was intially quoted a rate of 4.6% apr, my loan got accepted but they pushed my rate up to 15.6% apr. :mad:

Not sure if the £24k I had sitting in a santander account had nothing to do with it. I think the banks pulling a fast one here.

DCFC79

redpete wrote: »

What DCFC means is that it couldn't have been due to any credit rating or score that you see from a credit rating agency. It could well have been due to your credit history because the lender will get reports on this from the CRAs. It could also be due to the credit rating that the lender themselves works out using criteria that they won't tell you.

Correct, I meant rating/score.

Thanks

iolanthe07

Some people seem to get offended and hurt if they are not offered the headline rate when they have a good credit record. But it is nothing personal - it is just that they didn't meet the bank's lending profile when they applied. The bank may have already reached its 51% requirement for that month/quarter/year, so why would they extend the low rate to new borrowers?