Frustrating APRs due to never having been in debt

anonymous81846

Hello all,

With Interest rates at such low levels - I'm looking for a personal loan (~£20k) to help with creating the perfect wedding.

I'm a homeowner, with 35% equity in my flat, valued at £370k. I've never been in arrears, I've had one loan in my life (10 years ago) that was paid promptly (20k in three years). My salary is over £100k, and my Santander credit card is paid in full every month. I don't want to release equity from the flat because it would ruin a surprise for my partner.

I've applied for two loans with companies having representative rates of 3.3% and 3.8%.

The rates they've quoted me are 11.5% and 16.5%

In reality, I'm an incredibly low risk. But for some reason, the computers are assessing me as high risk. My Experian CreditScore is 999.

I'm frustrated at the situation.

Is there anything I can do in the very short term to help?

asus1987

get some 0% credit cards?

bargainbetty

You are requesting a high sum while having little outstanding debt and a high salary. If you are living well within your means you should be able to save money towards this event and demonstrate that.


If you are living month-to-month due to your lifestyle choices, the banks may not wish to loan a large sum to you. Your credit score means nothing, it is the history of money management that is reviewed.

Pixie5740

No lender uses your Experian credit score and Experian don't lend money so your 999 score is irrelevant.

Lenders are just looking for patterns and if you have very little on your credit history then lenders don't have much to go on. No credit history does not equal a good credit history. Those representative rates you've quoted tend to be for loans £7500 to £15000, not £20k loans which generally attract higher interest rates due to being higher risk.

How much are you managing to save each month currently?

lee111s

Ask experian to lend you the money as they think so highly of you.

foxy-stoat

As weddings take at least a year to plan, just save a couple of thousand a month and you will be there in 10 months....if your short just use the clear Santander Card you have - BOOM !!!!

marcarm

anonymous81846 wrote: »

Hello all,

With Interest rates at such low levels - I'm looking for a personal loan (~£20k) to help with creating the perfect wedding.

I'm a homeowner, with 35% equity in my flat, valued at £370k. I've never been in arrears, I've had one loan in my life (10 years ago) that was paid promptly (20k in three years). My salary is over £100k, and my Santander credit card is paid in full every month. I don't want to release equity from the flat because it would ruin a surprise for my partner.

I've applied for two loans with companies having representative rates of 3.3% and 3.8%.

The rates they've quoted me are 11.5% and 16.5%

In reality, I'm an incredibly low risk. But for some reason, the computers are assessing me as high risk. My Experian CreditScore is 999.

I'm frustrated at the situation.

Is there anything I can do in the very short term to help?

that surprise being starting married life 20k in debt :eek:

I agree with saving the money, if you can repay the loan then you can save the equivalent money starting now and be in a much better position starting your life together.

He/she will remember the day just as much if you spend 5k or 50k, they're marrying you not marrying the ceremony.

dealer_wins

I will never understand why people spend £20k on a wedding, let alone if they have to borrow it. Insane.

SeanG79

The 3.3% and 3.8% are usually for smaller loans £7.5k - £15k. If I needed £20k, I would personally try for 2 £10k loans with different lenders, which would present a lower risk and likely a lower rate with each bank. (but I wouldnt take out a loan for a wedding!)

Clive_Woody

dealer_wins wrote: »

I will never understand why people spend £20k on a wedding, let alone if they have to borrow it. Insane.

I agree but concede it's all relative. If the OP earns above £100k as stated and wants a lavish wedding then spending this amount may not be that unreasonable (depending on other debts and circumstances of course).

dano17439

Try Tescos. I recently got a loan for 25k at 3.4%