Mistake of applying for Tesco loan during probationary period

jkcool

Hi All,

I just switched jobs recently and in the very first month, I received a pre-approved loan email from Tesco. I straight away applied. It got approved in principle. Asked me to send a certified copy of my passport/ driving license to finalise the loan. I did it over the weekend. Got a text to call them back, they asked me if I had any probation in my new job. I just checked my contract and it says 3 months. Tesco has rejected my loan application saying that if I am on probation I cannot be accepted. So this is going to sit on my credit file as a rejected loan application right?

I went through Nationwide Bank load eligibility criteria and it does not mention anything about being in probationary period. If I apply with them will they reject my application because of the denial from Tesco ?

I have a combined credit limit of £48K on my various cards and my current dues are around 9K. If it matters.

[Deleted User]

jkcool wrote: »

So this is going to sit on my credit file as a rejected loan application right?

Wrong.

It's a search.

The decisions isn't recorded.

jkcool

Thank you !

If a credit card application is declined straight away, is that also considered as just search ?

[Deleted User]

It's just a search - unless it fails internal checks before the search, in which case it's nothing.

kwame41

Its about 'Hard' & 'Soft' searches.


Looking at eligiblity results is soft and lenders dont see it so no impact on your file.


Applying for credit will result in a hard search and will be seen but no information regarding the decision is seen.



The more hard searches in a short period of time will have a negative impact on your eligibility.

jkcool

So it will be a Hard search.

My probationary period is for 3 months so it is better to wait until then to apply. The rate Tesco gave was 3% and Nationwide quote is 6.8%. I will see after Christmas if Tesco gives me more or less the same amount.

kwame41

Not sure what the threshold of multiple applications in a short period of time would result in a negative impact on your credit file. It gives lenders the impression the applicant is 'desperate' for credit.

But if you were given 3% in principal you must be quite attractive. I would wait until your probation period is up at work.

Gaz83

kwame41 wrote: »

But if you were given 3% in principal you must be quite attractive. I would wait until your probation period is up at work.

Chances are it'll have been an automated chain "you have been pre-approved at a representative rate of 3%" e-mail, 3% won't necessarily be the rate the OP would be offered.

jkcool

I have all the final loan documents with 2.999% APR. I did even send all my id documents and send the forms. They called me up and said that they have to reject it as I have a probationary period at work.

DCFC79

jkcool wrote: »

I have all the final loan documents with 2.999% APR. I did even send all my id documents and send the forms. They called me up and said that they have to reject it as I have a probationary period at work.

If you check your credit reports you will see that its searches recorded and not rejections.

jkcool

Just to update. Decided to do a price promise with Nationwide as I am their customer.

I waited for my first payslip and called up Nationwide bank to check if they can match. I clearly told them about the probation period and things like that. They were fine as long as I can provide last 3 months payslip at the branch, They went ahead over phone with the application and said their loan APR is 8.6%. But they can match the Tesco loan offer.

Went in to the branch and they took the loan documents from Tesco and payslips and said they have given loan for 2.5% APR. In 15 mins, they transferred the money. Phew !