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Not advertised %apr

Snivvy
Snivvy Posts: 2 Newbie
I applied for a loan at a 5% apr and got an email saying it's been accepted at a 21% apr and documents will be sent out to me in 2 working days. I don't want the loan at this rate.

Do I just not sign the documents? Or do I need to do something else too?

I wasn't given the option to accept or reject the loan at the apr rate I was offered.

Comments

  • 20aday
    20aday Posts: 2,610 Forumite
    Ninth Anniversary 1,000 Posts Combo Breaker PPI Party Pooper
    Personally I would contact them and say you're rejecting your recent application.

    The APR you've seen quoted is offered to at least 51% of customers; the other 49% (like yourself) fall in the category where your interest rate is higher.
    It's not your credit score that counts, it's your credit history. Any replies are my own personal opinion and not a representation of my employer.
  • DCFC79
    DCFC79 Posts: 40,644 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    You can reject it by phoning them as 20aday suggests.

    They didn't like something on your credit file hence the 21% rate. The rate offered might be the best you can get.

    Whats the purpose for the loan ?
  • Snivvy
    Snivvy Posts: 2 Newbie
    It's for home refurbishments. I've checked experian. My credit rating is good, never failed to meet payments on car hire purchase. But I have very little credit history as the mortgage is in my partner's name.
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Why are going to be paying for home improvements for a property that is not yours?
  • The advertised rate has to be offered to 51% of those who are accepted NOT 51% of those who apply.
  • DCFC79
    DCFC79 Posts: 40,644 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Snivvy wrote: »
    It's for home refurbishments. I've checked experian. My credit rating is good, never failed to meet payments on car hire purchase. But I have very little credit history as the mortgage is in my partner's name.

    Maybe thats the reason, you have little history. Can your partner not get the loan ?

    If they can't then maybe you need to change plans.
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