Personal Loan at 3.3%

Blankspace24

I applied for a personal loan for 3.3%. I have my salary account from last 3.5 years, monthly credit of £3000 and have maintain balance of more than 1500£ for all this many years. I asked my bank to provide me Personal Loan at 3.3% however they are ready to provide me at 6.9%. What are the possible reasons for my credit score getting low ? I don't use any credit cards and I have all my direct debits set with this bank. Please if anyone can explain would be much help. Let me also know ways to improve your credit score. I am on Teir 2 ICT Visa and not a permanent resident. Thank you.

MallyGirl

If you don't have any credit cards then you haven't built up a good history of paying back what you owe. Presumably you are also not on the electoral roll. Given those 2 things you have actually been offered a pretty decent rate.

foxy-stoat

The bank offers you an interest rate based on your financial circumstances, I am afriad you cannot pick the lowest rate, which isnt too bad at all.

Justice13075

Just type Low interest loans into google there are plenty there.

Blankspace24

I am on electoral Roll. However not using any credit card can bring down the credit score ?

MallyGirl

Being on the ER is good - my apologies for assuming you weren't.
You have to be able to demonstrate that you can behave responsibly with credit - via a good credit history. If you never borrow then you can't show evidence of good behaviour. That is why people start with sub prime cards (when that is all they can get) and use them responsibly until they qualify for something better.

jonesMUFCforever

Dakshesh wrote: »

I applied for a personal loan for 3.3%. I have my salary account from last 3.5 years, monthly credit of £3000 and have maintain balance of more than 1500£ for all this many years. I asked my bank to provide me Personal Loan at 3.3% however they are ready to provide me at 6.9%. What are the possible reasons for my credit score getting low ? I don't use any credit cards and I have all my direct debits set with this bank. Please if anyone can explain would be much help. Let me also know ways to improve your credit score. I am on Teir 2 ICT Visa and not a permanent resident. Thank you.

How much did you ask to borrow?
A lot of these loans only give the best rates to loans over £7500.

Pixie5740

Forget your credit score. It's just a marketing tool made up by credit reference agencies that no lenders sees or uses.

What's important is the information on your credit files. Lenders look for patterns on how you've handled credit in the past. No history does not equal good history. No history means you're an unknown quantity.

DCFC79

Dakshesh wrote: »

I applied for a personal loan for 3.3%. I have my salary account from last 3.5 years, monthly credit of £3000 and have maintain balance of more than 1500£ for all this many years. I asked my bank to provide me Personal Loan at 3.3% however they are ready to provide me at 6.9%. What are the possible reasons for my credit score getting low ? I don't use any credit cards and I have all my direct debits set with this bank. Please if anyone can explain would be much help. Let me also know ways to improve your credit score. I am on Teir 2 ICT Visa and not a permanent resident. Thank you.

No bank/ lender has to do business with you, 6.9% isn't that bad but try another lender and see what they offer.

MEM62

Dakshesh wrote: »

I am on Teir 2 ICT Visa and not a permanent resident.

Dakshesh wrote: »

I am on electoral Roll.

Really? a Tier 2 ICT visa would not give you the right to vote.

King_Nothing

I'm guessing the 3.3% was the representative APR, which banks only likely give out to one person to enable them to advertise that they offer loans at that low a percentage.