My experience with Tesco loan application

QuietOne

Hi guys. I applied for a loan through Tesco last Wednesday for 25k over 7 years. At the end of the application I didn't get a decision. They said they would get back to me on 48hrs. So my thought would be a no.

Friday I get a text message from them saying it was approved and the agreement will be sent in the post which I had to sign and return. Yesterday I received the paperwork but the apr was slightly higher than advertised which worked out an extra £20 a month. Which didn't bother me. So I signed it and sent it back yesterday.

Today I get a text message saying thanks for your application. The funds will be transferred into your account today. Checked my account and the money is there.

Honestly I never expected to get the loan. It's about 120% of my annual salary. I can afford the repayments anyway but seeing posts about them not lending more than 50% of your salary. Doesn't seem to be the case. I used £3,600 to pay off two credit cards. One I've now closed and the other I will close when the balance shows as zero.

Surprised how quick it was from me sending the paperwork back. I wasn't expecting to hear anything until later this week or next week and was expecting to fail the final checks.

sourcrates

Well you need to change your signature now that your in hock again !!!

bertiewhite

QuietOne, I also applied for a Tesco (Clubcard) loan last July and was surprised at how quickly it took to process, especially as they were able to approve it online using certain security questions.

Money_Rollercoaster

Whatever happened to saving up?

Pixie5740

Did you use some of the loan to repay credit cards that were 0% APR until the mid-2018? In other words you've just made your debt more expensive. :T

Being able to borrow 50% of your annual income is just a rule of thumb. I'm not sure that borrowing 120% of your annual income for anything other than a mortgage is something to celebrate but each to their own.

Money_Rollercoaster

You do realise that £20 extra per month for 7 years is £1,680 in additional interest.

Thandersen

I really don't see how this benefits you at all? Happy that you are granted the loan, however you just made your debt much more expensive. Furthermore the extra 20 for 7 years is stupid mate.

coco1958

QuietOne wrote: »

Hi guys. I applied for a loan through Tesco last Wednesday for 25k over 7 years. At the end of the application I didn't get a decision. They said they would get back to me on 48hrs. So my thought would be a no.

Friday I get a text message from them saying it was approved and the agreement will be sent in the post which I had to sign and return. Yesterday I received the paperwork but the apr was slightly higher than advertised which worked out an extra £20 a month. Which didn't bother me. So I signed it and sent it back yesterday.

Today I get a text message saying thanks for your application. The funds will be transferred into your account today. Checked my account and the money is there.

Honestly I never expected to get the loan. It's about 120% of my annual salary. I can afford the repayments anyway but seeing posts about them not lending more than 50% of your salary. Doesn't seem to be the case. I used £3,600 to pay off two credit cards. One I've now closed and the other I will close when the balance shows as zero.

Surprised how quick it was from me sending the paperwork back. I wasn't expecting to hear anything until later this week or next week and was expecting to fail the final checks.

Yes, I applied for a Tesco loan last year to buy a car and it was approved eventually, but the delay was my mistake because I decided to opt for the waiting period (forgotten what they called it now) whereby they give you a time frame to perhaps think about it before confirming you wish to proceed with the application. I thought I'd be able to take a day or two to make my mind up then go back online and finish the application but that's not how it works! If you don't proceed immediately when you apply first time, then you have to contact them once you've decided you want it and then they post out the paperwork to you which could take several days more. Anyway, I sent the paperwork back and the money was in my account very quickly. I was impressed really.
Regarding APR, you have to read all the small print when it comes to APR rates. What you see advertised isn't necessarily what you will get as it will depend on your credit rating.

27cool

Money_Rollercoaster wrote: »

Whatever happened to saving up?

The very idea!. Wash your mouth out with soap.
Saving up! What a ridiculous concept. It will never catch on.

cj1974cr

Remember guys Unsecured Loan APR are fixed and vary widely from lender to lender , this can be a better option than a Credit Card as most offer VARIABLE rates of interest unless you have it approved with an offer.

DCFC79

cj1974cr wrote: »

Remember guys Unsecured Loan APR are fixed and vary widely from lender to lender , this can be a better option than a Credit Card as most offer VARIABLE rates of interest unless you have it approved with an offer.

Dont see this advice was asked for.