what details affect your APR rate on a loan

WarFace

Sainsburys advertising 3.6 % on loans but when I applied it went to 6.6%.


My credit report is excellent and I have had a loan from them in the past with no problems.
I told the adviser I have 2 credit cards but I have not used them in over a year but he said just having them may have increased my loan APR to 6.6 are there any other factors which affects ?

Also if I cancel the 2 cards how long would it take to come off report so I can maybe get better rates ?


thankyou !

[Deleted User]

WarFace wrote: »

what details affect your APR rate on a loan

Affordability
Income
Electoral roll
Address mobility
Credit history
Available credit
Debt to credit ratio
Credit to income ratio
Financial associates
Specific lender criteria
Availability of funds

...to name a few.

The one thing that doesn't affect it is a CRA credit score.

WarFace

I have just seen "going overdrawn on an unarranged overdraft"


OOooops done a couple of times even if it was only couple days


considering I have car insurance with them and have had a loan in the past with them with no problems they could have given me the lower rate.....wheres the loyalty gone these days !!!


the risk is still the risk whether its 3.6 or 6.6 its just a very easy excuse banks use to extract even more money from the working man


6.6% is still competitive though I think.

DCFC79

They dont have to give you a lower rate just because you have car insurance and a loan. Loyalty doesn't always pay.

6.6% isn't too bad.

20aday

6.6% isn't too bad at all; Lloyds Bank have quoted me an eye watering 29.9% recently (soft-search.)

Needless to say I won't be applying for that, haha.

pd52

20aday wrote: »

6.6% isn't too bad at all; Lloyds Bank have quoted me an eye watering 29.9% recently (soft-search.)

Needless to say I won't be applying for that, haha.

At that rate it's usually a decline

R_P_W

WarFace wrote: »

I have just seen "going overdrawn on an unarranged overdraft"


OOooops done a couple of times even if it was only couple days


considering I have car insurance with them and have had a loan in the past with them with no problems they could have given me the lower rate.....wheres the loyalty gone these days !!!


the risk is still the risk whether its 3.6 or 6.6 its just a very easy excuse banks use to extract even more money from the working man


6.6% is still competitive though I think.

It is very simple....if you don't want to pay the bank any money then don't borrow any!

[Deleted User]

WarFace wrote: »

its just a very easy excuse banks use to extract even more money from the working man

To be fair, there'd be no point in lending to the unemployed man. He'd never be able to keep up with the repayments.

20aday

pd52 wrote: »

At that rate it's usually a decline

I thought it would be (typically like Nationwide's certain APRs when using their Soft Search facility.)