Accept 6.1% loan rate for £15k?

ozzy_man

I've been offered a loan by Sainsbury's at 6.1%, where the advertised representative rate was 2.8%. I understand why it happened but that seems like a big difference so my question is whether people think it's worth applying to other lenders that advertise a similar rate to see if they do a lot better than 6.1% or whether it's a long shot that will just wreck my credit score?

[Deleted User]

It's worth one more application, although 6.2% isn't a bad rate.

Your credit score isn't a real thing so don't worry about that. Your files will just show the searches, which won't have any long term impact.

ozzy_man

Thanks for the advice.

"Your credit score isn't a real thing so don't worry about that" - mind if I ask in what sense you mean? I've been signed up to the MSE credit club for a couple of years now and the numbers have seemed to fluctuate fairly accurately according to my activity.

ozzy_man

Update: just tried via HSBC and got 3.3% so £20 pm better off. Thanks again!

[Deleted User]

That's good news.

Your credit score is a made up up number. It doesn't reflect your credit worthiness or lender criteria, hence not being used or seen by anyone but you. It has no level of accuracy to be of any use.

PixelPound

congrats 3.3% isn't bad rate I guess you fit HSBC profile better. You will have two hard searches on your credit file but if you don't intend to apply for more credit in the short term, no real problem and they fall off after a year.

foxy-stoat

nic_c wrote: »

congrats 3.3% isn't bad rate I guess you fit HSBC profile better. You will have two hard searches on your credit file but if you don't intend to apply for more credit in the short term, no real problem and they fall off after a year.

I hope the OP doesn't need to apply for any more credit for a while now they have £15,000 in the bank.