My bank's higher interest rate compared to

bflare

I understand that companies offer interest rates that can change once you apply for a loan. I have used MSE Loans Eligibility Calculator & it's giving me an average APR of 3% on 8K. This is a soft credit check so if I applied, I would expect this APR to rise but on average how much would it rise by? Another thing that is baffling me is that my bank which is Barclays keeps sending me letters offering me a loan at a personal rate of a whopping 23.9% APR.


I had an 8k loan from Barclays 4 years ago which ended around 4 months ago & the APR was cheaper then. My Noddle credit score is 645 with a 5/5 rating.


I am worried that if I go with a company that is initially offering a low APR that it's going to rise significantly once I have applied properly & then it starts affecting my credit rating.



Any advice please?

foxy-stoat

Advice would be to apply to one more bank then go with the best interest rate.

Unfortunately MSE do not loan money and the eligibility calculator cannot be relied upon, how can it?

Good news is that you dont have a rating - only history. Making a couple of applications wont charge anything....making 3 or 4 in a few days might however.

Craig1981

you can look at a few sites that will do a soft search quoation for you, much better than the comparison sites.
Nationwide, John Lewis and Zopa are a few... they will give you an estimated APR before you apply, which may give you a better understanding of what type of APR you will get when applying.

i did these and then did a proper application at Tesco (using clubcard) and came out a little cheaper than the average quotes

DCFC79

Unfortunately no one can answer "on average how much would it rise by".

DCFC79

Forget the credit ratings, lenders see the history, only you see the rating. Are your files with Experian (mse credit club) and Equifax (clearscore) ok ?