Is it ok to apply for multiple loans at once?

deaston

Last year I lent £25k to my brother. I now could really do with £15k myself. I don't want to ask him for it as I know he can't afford to pay it back yet, so I'm happy to get a loan in the meantime.

I applied to Sainsbury's Bank whose decision has so far taken over a week and I've still not yet received any paperwork to sign.

I looked today at Zopa - same rate but with no early repayment charges (I know I'll be able to pay back the entire loan by the summer), so this seemed more suitable.

So, the question: considering I have an application open with Sainsbury's, could it do any damage also applying to Zopa?

Super_Whiskey

It depends. If it goes to a hard credit search then Zopa might question why you've applied to both and deem you as a higher risk especially as in their eyes you will have over £15k in borrowing to payback. Chase Sainsburys up just to see what's going on.

deaston

But if I decide not to take Sainsbury's, I'm guessing that refusal isn't then reflected on my credit report? So either way, Zopa is going to ask questions.

pow1983

deaston wrote: »

But if I decide not to take Sainsbury's, I'm guessing that refusal isn't then reflected on my credit report? So either way, Zopa is going to ask questions.

I can only speak from personal experience I recently applied for a loan with HSBC. It was accepted, but I had not signed anything, I had a change of heart and cancelled it prior to any signature. When I asked the branch if this would have any negative effect on my credit rating he said no. But it would still be visible on my credit report that I applied for a loan.
So I would say that cancel your sainsburys one before you look for another, so any future applications you make it will be visible that you cancelled it.
Also I got accepted the same day when I rang HSBC, didn't have to wait long at all so I would definitely chase Sainsburys, they appear very slow.

DCFC79

What apr did Sainsbury's offer you ?

Is it guaranteed Zopa will beat the apr ?

deaston

DCFC79 wrote: »

What apr did Sainsbury's offer you ?

Is it guaranteed Zopa will beat the apr ?

Still haven't got that far. I made the application last Friday (8th) and was told my application was being sent "first class post" for me to sign. A week later, I got a letter asking me to call them (not sure why they couldn't have just called me). They wanted a copy of my passport. I faxed it immediately.

It's now 10 days since applying and still nothing. I feel like giving up and applying to Zopa (I actually quite like the ethics of Zopa, regardless of interest rate).

deaston

Zopa offered me 19.9%! Apparently six-figure earnings and a near-perfect credit score aren't what Zopa wants! They also keep the £400 fee quiet til you've actually given them your details.

Khrisjun

deaston wrote: »

Zopa offered me 19.9%! Apparently six-figure earnings and a near-perfect credit score aren't what Zopa wants! They also keep the £400 fee quiet til you've actually given them your details.

Hi Deaston, was that for the full 15k? How quickly did you want to pay it back? I know they increase aprs for shorter term loans but seems high considering the limited info on your situation

DCFC79

deaston wrote: »

Zopa offered me 19.9%! Apparently six-figure earnings and a near-perfect credit score aren't what Zopa wants! They also keep the £400 fee quiet til you've actually given them your details.

Unfortunately your score isn't taken into account for loans.

deaston

Khrisjun wrote: »

Hi Deaston, was that for the full 15k? How quickly did you want to pay it back? I know they increase aprs for shorter term loans but seems high considering the limited info on your situation

£15k over 3 years. Earnings of £168k pa, £1,250 per month mortgage. Never defaulted on credit cards etc.

The only things I can think is that I've recently moved house and I'm self-employed. But APR of 19.9% says to me that the last thing they want is for me to borrow from them. A credit card would be cheaper.

deaston

DCFC79 wrote: »

Unfortunately your score isn't taken into account for loans.

Oh really? I never knew that - interesting to know.