TSB Not Offering 2.8% APR?

Prof_FrinkProf

Hi all,

I'm trying to apply for a loan via my TSB online banking to fund a car purchase, I decided to go with TSB as I thought I could get a loan at their advertised 2.8% APR as this is far better than the car dealership's PCP APR.

However, I have just logged in to my online banking, tried to apply for the loan and I'm only being offered 9.9% APR?

I've banked for a while with TSB (since they split with Lloyds) and Experian rates my credit score as 999 out of 999. I have a fair amount of credit history too with previous car finance agreements, credit cards, loans and a mortgage, so I can't see the issue?

I can call TSB tomorrow after work, but seeing as I have put a deposit down on the car today, I'm now feeling a little anxious.

Can anyone else shed some light to why this might be happening?

Thanks!

[Deleted User]

They'll offer the headline rate to 51% of successful applicants, but they will be the lowest risk 51% based on their criteria. You don't quite meet their criteria closely enough, regardless of the fictional Experian score.

Try a soft search to see where else may be suitable.

Prof_FrinkProf

Thanks ZX81, soft search on this website says I have a 95% chance of approval.

System

Approval of the loan, not at the headline rate.

Nebulous2

I have this theory that people with very good histories often self-select and apply for the table-topping rates. Getting into the 51% approved group can then be quite difficult. Applying to a company with a 3.5% rate might be easier because it doesn't have the same attraction or competition.

That might well be total bull of course, but I'm sticking with it.

Pixie5740

Prof_FrinkProf wrote: »

Hi all,

I'm trying to apply for a loan via my TSB online banking to fund a car purchase, I decided to go with TSB as I thought I could get a loan at their advertised 2.8% APR as this is far better than the car dealership's PCP APR.

However, I have just logged in to my online banking, tried to apply for the loan and I'm only being offered 9.9% APR?

I've banked for a while with TSB (since they split with Lloyds) and Experian rates my credit score as 999 out of 999. I have a fair amount of credit history too with previous car finance agreements, credit cards, loans and a mortgage, so I can't see the issue?

I can call TSB tomorrow after work, but seeing as I have put a deposit down on the car today, I'm now feeling a little anxious.

Can anyone else shed some light to why this might be happening?

Thanks!

You don't fit TSB's risk profile to be offered the representative rate but they will give you a loan at a higher rate.

Your 999 from Experian is meaningless since there's no such thing as a universal credit score. Each lender scores you on a number of criteria such as credit history and affordability but categorically not the score Experian give you.

Prof_FrinkProf

Thanks Nebulous2, that makes sense.

What is my best plan of attack? Ideally I would apply for a loan this evening but I don't want to have an application turned down and for it to leave a mark on my credit history.

Nebulous2

Prof_FrinkProf wrote: »

Thanks Nebulous2, that makes sense.

What is my best plan of attack? Ideally I would apply for a loan this evening but I don't want to have an application turned down and for it to leave a mark on my credit history.

It's hard to say. You will have one hard search already for TSB. Lenders wont see if you were successful, just that a search has been made. What rate is the garage offering? Their credit will be easier to get. Rates are often better between £7500- £15000 and for 3-5 years.

If it was me I'd make one more application. I'd go with an eligibility checker, pick a company with a high chance outside the top 2-3 for best rates. If that doesn't work you would be reaching a point where the hard searches could go against you. Then you might have to accept you wont get better than the garage / TSB.

DCFC79

Prof_FrinkProf wrote: »

Hi all,

I'm trying to apply for a loan via my TSB online banking to fund a car purchase, I decided to go with TSB as I thought I could get a loan at their advertised 2.8% APR as this is far better than the car dealership's PCP APR.

However, I have just logged in to my online banking, tried to apply for the loan and I'm only being offered 9.9% APR?

I've banked for a while with TSB (since they split with Lloyds) and Experian rates my credit score as 999 out of 999. I have a fair amount of credit history too with previous car finance agreements, credit cards, loans and a mortgage, so I can't see the issue?

I can call TSB tomorrow after work, but seeing as I have put a deposit down on the car today, I'm now feeling a little anxious.

Can anyone else shed some light to why this might be happening?

Thanks!

What do Call credit and Equifax rate you as ?

TSb could have checked them 2 for your credit history.

Prof_FrinkProf

DCFC79 wrote: »

What do Call credit and Equifax rate you as ?

TSb could have checked them 2 for your credit history.

Just carried out a check with Equifax, all looks okay. Not sure how to find an actual score figure though?

Prof_FrinkProf

Done it! Sainsburys bank at 3.1%! Thanks everyone for their help.

I think it's a bit miss leading that when you use the soft search on here it advises you that you have a 95% chance of getting a loan at 2.9% when in fact, you don't!