Headline rate 'scam' - M&S Loans

meer53

Making money on savings but losing MORE money in interest ? Makes no sense.

Faith177

BenjaminClarke wrote: »

That's well put. They aren't doing anything illegal, it's just morally wrong. They could easily give you a ball park interest rate. Even if they said my interest could be between 3.4 and 15.8 per cent when I applied then I'd have assumed it'd be the higher amount. As I've said before I wasn't expecting the lowest rate but when I was quoted 15.8 two weeks after applying I just felt it was a complete waste of time. Anyway I have taken all comments on board and we'll make our decision soon. I know it sounds strange but I find it hard to give up money I already have. I'd feel at a loss giving up hard earned savings that are making money for us. Somehow I find it more attractive to have a manageable monthly payment instead. Not sure if you can relate to that at all. I'll probably just bite the bullet though and pay the debt from our savings. Thank you for your input and sorry to regency for high jacking his thread!

If you think purely on the interest rate alone yes you are earning what maybe 3-4% (if your lucky) on your saving but you will be paying nearly double by borrowing it long term you are losing money hand over fist.

Loans and the underwriting of loans can be complex and take time. You wait till you apply for a mortgage your'll be in for a shock mine was a simple remortgage and still took forever by the time paperwork had been sent in and the underwriters requested additional informal action due to a recent change in job and a pay rise that wasn't reflected in my first months salary because of pay day cut offs.

mrsp1987

I can see where you're coming from but you're making a rod for your own back. Yes, I like to have savings too. However, the interest you are earning on that 21K is probably what? 1%, maybe 1.5? The interest on your debt is 18%?
Sit down with a pen and a calculator and maybe after seeing the figures in reality rather than as an abstract you'll feel more convinced that it's the right thing to do. You'll still have a lot of your savings there - you're not using it all.

burlington6

BenjaminClarke wrote: »

We could and it is an option we are certainly considering, thanks. My gripe though is over how long tesco took to process our application and the fact I feel misled by what I consider false interest rate advertisement. That's just me though. It seems most people just shrug their shoulders and say that's the way it is. Ignorance is bliss at the end of the day.

haha, we all know your type.

It's always someone elses fault, boo hoo

andyfromotley

BenjaminClarke wrote: »

This is the Tory fan club so what chance does an open-minded, liberal, left-winger have?

For someone who runs a poitical blog you seem to have a very sketchy grasp of what liberal ideology stands for............

andyfromotley

Back to the original point though, do you feel ripped off when you see a sign on a shop that says 'SALE!!!! up to 75% off' but then find that the particularly fetching purple cords you set your heart on only have 10% off??

Its a bit annoying but i feel that most people understand how these things work. I personally think that companies should have to publish their lending scorecards, i think the amount of fraud this would cause would be minimal and would in general enable people to be directed to an appropriate lender.

Intererstingly i am surprised that one of the CRA's hasnt devised a system where you apply to them for a loan, they use a generic lending scorecard (lets face it they are all going to be pretty similar) and then companies could bid for your business based upon the info you have provide, one credit search recorded lots of options and real competition.

marc81

When I applied for £7500 which qualified for the 3.3% I too was offered 6.3%, I also feel that I i'm a good position with regards to credit score etc. and got told that it must just be something on my application. The strange thing is that they would give me their headline rate of 4.5% on a loan of £7000, 1.8% less for the sake of £500, very odd.

BenjaminClarke

burlington6 wrote: »

haha, we all know your type.

It's always someone elses fault, boo hoo

No, sounds to me like that's you. I am not like that at all actually. Please give one piece of evidence where I have blamed anyone else? I don't expect honesty from anybody in this day and I don't care either. People can say and do whatever they want.

BenjaminClarke

andyfromotley wrote: »

For someone who runs a poitical blog you seem to have a very sketchy grasp of what liberal ideology stands for............

Honesty from lenders that's all I want. How is that not a liberal ideology? Please explain.

BenjaminClarke

marc81 wrote: »

When I applied for £7500 which qualified for the 3.3% I too was offered 6.3%, I also feel that I i'm a good position with regards to credit score etc. and got told that it must just be something on my application. The strange thing is that they would give me their headline rate of 4.5% on a loan of £7000, 1.8% less for the sake of £500, very odd.

Thanks for the input but I don't care that I was offered 15.8% instead of 3.4% advertised. Most people on here seem to lack the basic capacity to be able to read and process information. I will say this for the last time: I was upset because Tesco Bank took two weeks to process our application for a loan, then offered us a joke interest rate. I am also slightly annoyed that the search they did will sit on my file, although I am not so bothered now because I have been told this won't really matter.

I guess this is just me throwing my toys out the pram though? Apparently I blame everything on everyone else... typical Tory blah blah if you ask me. I blame Tesco for taking so long as when I originally applied they said two working days... what is wrong with that? I am sure most of you are hypocrites too and have probably complained about the same thing during your miserable lives. Wouldn't you complain if you were told something you ordered online would take two days to arrive but instead it took two weeks? Honestly, some people on here have really amazed me. Clueless isn't even the word...