Advertised rates are a con - HSBC

mgrowe

Hye,

I applied for a loan from HSBC last week and they advertise a typical APR of 3.3%. First they turned me down (I was very surprised as I have a high credit score and no missed payments on anything), Then I got another email saying they would give me the loan but at a different rate. Came through in the post today and it has leaped to 8.4%.
I consider myself to be a good risk so I think it was a rate advertised to draw me in then the rate over doubles.
I will not be pursuing the loan with them at that rate and my new car can wait a bit longer. Anyone else had similar experiences?

I know they take every case individually but it seems a bit of a con to me.

Clive_Woody

mgrowe wrote: »

I consider myself to be a good risk

Sounds like they disagree and seeing as they are the one doing the lending they get the final call.

Typical rates quoted have to be given to 51% of successful applicants, you made the other 49%

Pixie5740

No, HSBC advertise loans with a representative APR of 3.3%, not a typical APR. The representative rate has to be offered to 51% of successful applicants, you are one of the 49%. The meaning of "representative APR" has been discussed numerous times on this board before.

Who says you have a high credit score? Have HSBC told you that they rate you highly? Is the "high credit score" from one of the credit reference agencies, none of whom lend money and generate credit scores that no lenders uses?

ryanm8655

Had the same experience with HSBC but as above really...


The annoying thing for me was the fact I bank with them and having got a quote online I was told 5.9%, yet when I applied properly it went up to 16.9% and an option to accept/decline.


I get that the advertised rate isn't necessarily what you'll get but when you bank with them and already have a loan with them, to quote 5.9% and then for it to leap to 16.9% seems a bit off (I did it through online banking).

PeacefulWaters

Well obviously you'd be a better judge of your own risk profile than a lender advancing £billions in unsecured credit each year.

MallyGirl

ryanm8655 wrote: »

I get that the advertised rate isn't necessarily what you'll get but when you bank with them and already have a loan with them, to quote 5.9% and then for it to leap to 16.9% seems a bit off (I did it through online banking).

it was probably affordability then - you already have one loan and now you want more. That would ring some warning bells rather than make you a good bet

Thrugelmir

mgrowe wrote: »

I was very surprised as I have a high credit score and no missed payments on anything

Means absolutely diddly squat. That's not how a lender credit profiles you.

I know they take every case individually but it seems a bit of a con to me.

Until you make a formal application they don't have all the data to hand. They need your permission to access it. Once they have the data then they can appraise you fully.

Like a job interview. The offer is subject to references.

ryanm8655

MallyGirl wrote: »

it was probably affordability then - you already have one loan and now you want more. That would ring some warning bells rather than make you a good bet

But it was consolidation, a chunk of it went on the other HSBC loan as soon as I accepted (I couldn't avoid paying they took it automatically), it seemed a bit sneaky to me, it wasn't the advertised rate, it was a rate based on my circumstances and if it hadn't enticed me with a lower rate than I was currently paying I wouldn't have bothered applying.


Anyway...live and learn...

tidds

Consolidation loans never get a good rate.

JJG

tidds wrote: »

Consolidation loans never get a good rate.

That's an untrue statement.

GingerBob_3

Well, HSBC, the criminal bank, what more can you expect? They are proven money launderers and sharp practice obviously pervades their entire operation. Yes, clearly a ploy to hook people. Some will take the bait, I'm glad you didn't. They'll have worked out the likely profitability of their sneaky approach and come to the conclusion that it's worth doing.