Advertised Loan Intrest rates on MoneySavingExpert

[Deleted User]

Risk based credit scoring.

FrankRizzo

So if you are a higher risk you get a worse interest rate or is it the opposite ? Can’t see the logic in that??

FrankRizzo

Clive_Woody wrote: »

They don't, I've always got the representative rate advertised.

What’s your secret to getting the best rate every time?

[Deleted User]

Yes, that's how it works.

It's entirely logical. If you have a group of customers who are more likely to default, you need a greater interest return to cover the higher losses.

You wouldn't give low risk customers a high rate because you wouldn't get any customers.

DCFC79

FrankRizzo wrote: »

What!!!8217;s your secret to getting the best rate every time?

Im afraid Clive can't let you in on the secret.

If you want the secret you need to let some money pass the greasey palms of certain posters on here.

forgotmyname

Secret to getting the best rate... You must keep it a secret and not tell anyone else....

Martin would get the advertised rate.....



Have enough money not to need the loan in the first place... Shhh keep it a secret.

Clive_Woody

FrankRizzo wrote: »

What’s your secret to getting the best rate every time?

Manage your finances really well. Pay your debts on time, do not over stretch yourself, have realistic expectations about how much you can borrow, do your research in advance. Essentially ensure your credit file makes you an attractive prospect to lenders and gives them confidence that they will get their money back on time as per the agreement.

Not wishing to sound like I am bragging, but earning a significant wage also helps, but still living well within your means.

Even then be prepared for the fact that potentially you may still not get the headline rate, there are other lenders and often the spend you had planned can be delayed.