Loan from bank

MNM2903

Does anybody know if getting a loan from your bank as a customer with good history banking with them is different to a non customer.

I want to know because ive been working on my credit history over the last 12 months as it was previously fairly poor. I have now cleared my debts and settled my accounts and i only have my car finance left for another 2 years.

I want to get a loan to pay the finance off but its 5k, i know i would be rejected by any high street lender but i was wondering if my own bank is more leniant or if they carry out different checks?

Thanks in advance

enthusiasticsaver

They would still check your credit history even if it is your own bank so a poor credit record would still show up. What rate is the car finance and why are you wanting to move it? Is it due to interest rate?

pvt

If you have a GOOD history with them then I would imagine that in a marginal case it might go in your favour, as they would have evidence of how you manage your money.

Having said that, however, by and large they will have lending and affordability criteria, and those are likely to be the same irrespective of whether you're a customer or not.

MNM2903

yeah the rates at 19% and also i would prefer to pay it off now and then its owned by me. I have made half the payments for the full term and have the option to hand it back in and clear the finance which is my other option im thinking of taking just to save on the monthly cost and then just buying myself a run around as my girlfriends car is the main car we use.

redpete

People might express opinions about how your bank will treat your application but the only way you will find out is to apply for a loan with them.

By applying your credit rating might be slightly damaged because of the additional application / search; this will make little difference to your chance of getting further credit later on but your application might be successful - you won't know unless you try.

andyfromotley

I always think the whole personal relationship with your bank is overstated. I think they tend to have set criteria and thats its, you either qualify or you don't. In fact for some products i think banks actually treat their existing customers worse, depending on the whole loyalty thing to charge you more.

I can't evidence any of this, its just my gut instinct!

jessie4109

Which bank are you with? I'm only asking as there may be an option within online banking etc to find out if you are eligible.

Stereochild

andyfromotley wrote: »

I always think the whole personal relationship with your bank is overstated. I think they tend to have set criteria and thats its, you either qualify or you don't. In fact for some products i think banks actually treat their existing customers worse, depending on the whole loyalty thing to charge you more.

I can't evidence any of this, its just my gut instinct!

I have to say I agree with you Andy and again like you it's a gut instinct.
My bank was offering a very low interest rate on loans but when I apply'd I was offered the loan at a much higher rate than was offered.

Mullen: You may well get the loan but not at the advertised offer. You have the income available to cover the payments because you have paid off some loans. This is on your credit file.

forgotmyname

I had debt issues a while back and it trashed my chances of future credit.

I made full and final offers and 5 years later no more debt. My bank offered me a pre-approved credit card. OK the rate was not brilliant at 17.9% but it was 0% for 15 months, and as i do not want credit again, it was not an issue.

It gets paid off in full every month even during the interest free period.

Ive just had my limit increased also.

I probably just ticked all the right boxes on the computer. Regular amount paid into the account, Never overdrawn, No other lines of credit etc etc.