Sainsburys - has anyone got the advertised rate?

swayed

gazman100 wrote: »

I understand what you're saying, but can't help think they'd be different criteria for loans and credit cards. Those that pay off cards every month would make 'poor' credit cards customer from a profit/interest point of view but I'd have thought look a safe bet for a loan. But that said I'm not a bank!:)

I think it's undoubtedly the case. I prefer to take out loans for car purchase, home improvement at these low rates of interest, rather than raid the savings, since it commits me to tight money management.


I have, and have always had, a perfect credit history, and my spare income each month is a clear 1.5K (no mortgage, no other debts). Over the last 3 years I have taken out two 12 mth loans with Sainsburys, for which I received the lowest adverstised rate of interest. On both occasions, I paid back early, meaning that Sainsburys would have made just a few hundred pounds from me.


I have just received a quote for an additional loan - 7.6%, and which would have simply made me laugh if it weren't for the fact that, by undertaking their credit search, Sainsbury's hadn't probably messed up my chances of getting a lower rate elsewhere.


Sainsbury's are of course entitled to offer people rates aimed at maximum profit: but the lack of transparency in getting you to apply is galling.


Shall probably just raid the savings instead.

andyfromotley

JJG wrote: »

This makes no sense. That's not how percentages work. If they gave everyone who first applied the headline rate then that would be 100% who got the headline rate. For everyone who doesn't get the headline rate, they have to give 1.04 people the headline rate.

It would be bad business to give say the first 100,000 people the headline rate and then the following 96,135 people the non-headline rate as they would not be factoring in the risk of non-repayment and good/bad credit risks.

No, once they have fulfilled the 51% criteria they can then focus on charging as much as they can for the remaining 49% luring them all in with the headline 3.6% which virtually none of them are going to get.

20vt-rs

Well I've just applied for a loan at the 3.6% advertised rate, got the acceptance email and it stated I was not in the 51%. I was offered 5.6%, and I negotiated it to 4.6% over the phone which I am happy with.


I do not think this is just a Sainsbury's thing, as I have also checked and applied to two other institutions offering good rates, both of which came back offering be higher rates than advertised.


I have a very good credit rating and I don't think you can rely on that to get the lowest rates. I do however agree, that this is all very misleading as you use quotations for budgetary purposes that all go out the window once you get accepted, and sometimes that is too late because they have tarred your credit history with the searches.


I have not taken a loan for a very long time (over 15 years) and last time I am sure the rates were up around 15-20%, so 4.6% is good!

swayed

20vt-rs wrote: »

Well I've just applied for a loan at the 3.6% advertised rate, got the acceptance email and it stated I was not in the 51%. I was offered 5.6%, and I negotiated it to 4.6% over the phone which I am happy with.


I do not think this is just a Sainsbury's thing, as I have also checked and applied to two other institutions offering good rates, both of which came back offering be higher rates than advertised.
QUOTE]

More than likely they have the same practices, but clearly it's based on criteria greater than simply credit worthiness.

After my distasteful experience with Sainsburys Bank I thought I'd try elsewhere: M&S gave me their lowest rate of 3.6%.

JPD86

I've just helped my dad to apply for a Sainsburies loan online and he received the paperwork yesterday at the advertised rate + 0.1% so quite happy with that.

On the application screen it stated he was accepted in principle subject to further checks and wasn't in the 51%.

andyfromotley

There has been a noticable drop in people here posting about not getting the headline rate so maybe they are balancing the %'s out again in favour of the headline rate. Who knows?