advirtised interest rates on new loan

smokeandmirrors

This may have been covered elsewhere like the Nationwide deal but I have applied for a loan with Sainsbury's bank offering 2.9% and after the application on the phone I was with the understanding that I would be offered a loan at 2.9% or nothing,as the repayment figures, affordability and period of loan were discussed . How and ever they have sent out paperwork with a loan acceptance and an offer of 5.2% and they have now hit my credit score (which I have found hard to get and spent a long time trying to look after and grow with a big bang looking for credit I could do with out. I had a great credit score and am nearly afraid to check now they have disecteded and decided I've not been a borrer. Can I challenge them and call them out and demand another offer or have I just been sucked up in this vacuum of one sided credit system BS Help..........

jonesMUFCforever

One credit search (and you would not have had any offer whatsoever without one) is not going to hurt your credit files.
You cannot demand that they offer you 2.9% before you apply. I am surprised they did not put the phone down on you.
You don't say how much you applied for but 5.2% is not a bad rate.

Your credit 'score' is meaningless and I hope you don't pay a monthly fee to see it.

smokeandmirrors

I would like to add that prior to making this Loan application I found their website quite disorientating also that I decided to open a savings account to bolster my chances of getting a loan.
Anyway I was informed that I needed a confirmation letter ID number sent from them to proceed with a savings account, again on the phone I asked the customer service about this and she said the savings and loans dept. were completely separate.
No ability to save and or cash available taken into account on my so called credit score.

smokeandmirrors

£20000 or thereabouts within their current website loan calculator results to offer 2.9% so what is going to get me to a 2.9% rating with a bank if my Credit score is meaningless... when its the advertised rate and its what they are offering up front...

[Deleted User]

They will make an offer based on risk.

If you have a patchy credit history, and are asking for a large sum, you're very unlikely to get the headline rate. But 5.2% certainly isn't a bad rate.

You could try an application elsewhere so you have something to compare it to.

BrassicWoman

A savings account opened on the day is hardly evidence of a track record of moeny management

BrassicWoman

Also, this is on their loans page and seemd pretty clear, and is in the same size print as everything else..


We treat all our customers and their applications on an individual basis. The APR we offer is determined by the details you supply and the loan you are applying for, along with an independent verification of your credit and repayment history and will range from 2.7% to 26.9% APR.

Pixie5740

smokeandmirrors wrote: »

This may have been covered elsewhere like the Nationwide deal but I have applied for a loan with Sainsbury's bank offering 2.9% and after the application on the phone I was with the understanding that I would be offered a loan at 2.9% or nothing,as the repayment figures, affordability and period of loan were discussed . How and ever they have sent out paperwork with a loan acceptance and an offer of 5.2% and they have now hit my credit score (which I have found hard to get and spent a long time trying to look after and grow with a big bang looking for credit I could do with out. I had a great credit score and am nearly afraid to check now they have disecteded and decided I've not been a borrer. Can I challenge them and call them out and demand another offer or have I just been sucked up in this vacuum of one sided credit system BS Help..........

It's been covered numerous times on the forum by people like yourself in the 49% of successful applicants who don't understand what representative rate means. It's also covered on the main MSE website and Nationwide's own website.

Why don't you ask whichever company has given you a high credit score for a loan? Oh, that's right they don't lend money so whether they rate you as good, bad or indifferent is irrelevant.

foxy-stoat

Yes, this has been covered else where, many times, on a daily basis, you wont be the first and wont be the last.

This is copied from the loan calculator page:
Credit subject to status. The rate you may be offered will depend on your personal circumstances, credit assessment procedures and other related factors.
So you would of been offered the lowest rate or another rate depending on your personal circumstances.....NOT a decline.

5.2% isnt a bad rate for £20,000.

You dont have a credit score.

The credit system is a bit one sided, you want their money so you need to follow their rules....when you have countless zeros on a computer screen that you want to lend normal people that you may or may pay you back, you can make the rules up as you go.

Good luck in your quest to get £20,000 for 2.9% interest rate, you may get it or may not but let us know so the next poor sap who is hunting for the lowest rate loan wont need to make yet another thread up.

iolanthe07

5.2% APR is not bad. Only 51% of successful applicants will get 2.9%, and you clearly didn't meet their criteria. Banks do not see your credit score, only your credit history.

smokeandmirrors

Thanks for the response guys just a few more questions
I have only been in the credit system 5 years now and I've not had the need for a cash loan until now. That said I have had a credit card religiously payed off and been mortgage approved but didn't complete.
1. I am thinking I should have been living my life more on the "credit" side than the "I can afford" side to build up my credit history.
I have just been given a reality check Am I a 5.2% accross the board or is there a logarithm to smash the piniata?
2. I am thinking I should have applied to my bank of 5 years for this loan with similar rates as they have a better profile of me would the be true?
3. Did I make the mistake of going for the lowest rate advertised (..YES..).and maybe not consider the other local supermarket giant also with similar rates whom I am more a regular rewards card using shopper of ? Does the profile matter that much
4. How many more bites of the cherry am I going to get at this before the wheels fall off and it kills my credit report ?
5. Does anyone know how long before a hard search decomes less of an "elephant" (revelant) on your credit report? i.e how long should I wait before approaching another lender?

Thanks for your support