Sainsbury's bait and switch

stoneman

PeacefulWaters wrote: »

The OPs signature line explains how the world works quite well ... irony at its very best!

I have no idea what that has to do with my post, sorry can you spell it out for me please as I seem to be pretty stupid.

ReadingTim

stoneman wrote: »

I have no idea what that has to do with my post, sorry can you spell it out for me please as I seem to be pretty stupid.

It means that the low price you see is rarely the price you actually pay...

What do you think your signature means?!?

Pixie5740

How could they check your credit file before you submitted an application? You need to apply first.

Some lenders do offer a soft search facility but just because the soft search comes back saying, "yes," and offers and indicative rate that doesn't mean that once a full application is made you will definitely get that rate.

YorkshireBoy

Pixie5740 wrote: »

How could they check your credit file before you submitted an application? You need to apply first.

They checked his credit file as part of the eligibility check, as stated above.

Some lenders do offer a soft search facility

Sainsbury's being one of them for their loans. See above.

but just because the soft search comes back saying, "yes," and offers and indicative rate that doesn't mean that once a full application is made you will definitely get that rate.

Why shouldn't it? They don't get any more information from a hard search than they do from a soft search. See above.

CLAPTON

stoneman wrote: »

Sorry I didn't know what Representative APR meant. Do now though.

BTW I have never ever been offered anything but the rate advertised in all the years of having loans. And I am nearly 60.

I thought they would have checked the credit files before accepting the application? So at that point I would have known straight away what rate I would be offered.

if you are nearly sixty and have had years of getting loans, then sadly you have learnt little about finance.
try saving first then then spending

Dobbibill

This may be worth a read from the main site

http://www.moneysavingexpert.com/loans/cheap-personal-loans

Within it explains about the Representative APR

All advertised loan and credit card APRs are 'representative'. This means only 51% of successful applicants have to get those rates. So, up to 49% may end up with a more expensive loan than they applied for

There are some good hints, tips and eligibility checkers on there too, worth having a look

PeacefulWaters

stoneman wrote: »

I have no idea what that has to do with my post, sorry can you spell it out for me please as I seem to be pretty stupid.

Well I interpreted your signature line as meaning "seek out cheap and there'll be a catch".

A bit like your loan application.

By the way, it is an issue that comes up often on these pages. I do think lenders should make bigger efforts to highlight the 51% rule to potential borrowers. They definitely mention it, but there is a strong argument to suggest more needs to be done.

In the meantime, Zopa.

Pixie5740

YorkshireBoy wrote: »

They checked his credit file as part of the eligibility check, as stated above.Sainsbury's being one of them for their loans. See above.Why shouldn't it? They don't get any more information from a hard search than they do from a soft search. See above.

Do lenders get exactly the same information from a soft search as they do a hard search? If that's the case, why do all the lenders offering soft searches (that I've checked) add a caveat such as the one Sainsburys have on their website:

Important information

The chance of approval shown above is not a guarantee of you being approved for a loan should you proceed to make a full application. If you do proceed to make a full application, it will be assessed in full before providing you with a final decision on your rate. During the full application process, you will be subject to a credit search in line with the terms of our privacy policy.

YorkshireBoy

Pixie5740 wrote: »

Do lenders get exactly the same information from a soft search as they do a hard search? If that's the case, why do all the lenders offering soft searches (that I've checked) add a caveat such as the one Sainsburys have on their website:

Important information

The chance of approval shown above is not a guarantee of you being approved for a loan should you proceed to make a full application. If you do proceed to make a full application, it will be assessed in full before providing you with a final decision on your rate. During the full application process, you will be subject to a credit search in line with the terms of our privacy policy.

The 'rules' were changed a while ago now, so customers were not penalised for shopping around for financial products. So in came quotation searches. Exactly the same as an application search, but not visible to other lenders.


The FCA Handbook, and the OFT's Irresponsible Lending - Guidance for Creditors, contain further information.

Gaz83

stoneman wrote: »

Sorry I didn't know what Representative APR meant. Do now though.

BTW I have never ever been offered anything but the rate advertised in all the years of having loans. And I am nearly 60.

I thought they would have checked the credit files before accepting the application? So at that point I would have known straight away what rate I would be offered.

Perhaps your age is the issue?

Nearly 60, possibly approaching retirement, (presumably) less of an income...