M&S higher APR than quoted

Danipat

I dont think it is much credit. One 'active credit card' and car finance. That isn't much in my opinion. Some people have 5 credit cards, loans, mortgage etc

One credit tends to have £50 max on now and again, then I pay it off. The other has £2-300 on it regularly but I always pay more than the minimum payment. The mortgage was in principle.

foxy-stoat

Danipat wrote: »

I dont think it is much credit. One 'active credit card' and car finance. That isn't much in my opinion. Some people have 5 credit cards, loans, mortgage etc

One credit tends to have £50 max on now and again, then I pay it off. The other has £2-300 on it regularly but I always pay more than the minimum payment. The mortgage was in principle.

All this is very nice, fact is that your 999 credit score is only seen by you. The lender can see your credit file/history and with your personal circumstances and they internally score you. You get offer a rate based on this information.

5.9% isn't a bad rate, if you think it is then apply to another lender to see what they offer you.

BoGoF

What about the car finance? How much and how does this compare with your income?

Danipat

Yes I know, I used to assist in underwriting myself. I also know that when they see my credit file, this is perfect, no missed payments, defaults etc.

I know its a good rate and I'm not going to go elsewhere, I was surprised it worked this way as I'd never done it before and was only asking if anyone had experienced the same.

BoGoF

Danipat wrote: »

I know its a good rate and I'm not going to go elsewhere, I was surprised it worked this way as I'd never done it before and was only asking if anyone had experienced the same.

Yes, as only 51% of successful applicants will get the advertised rate the other 49% will be in the same boat as you with some being offered more then 5.9%

B_G_B

Danipat wrote: »

One credit tends to have £50 max on now and again, then I pay it off. The other has £2-300 on it regularly but I always pay more than the minimum payment.

This would imply that you sometimes / often carry a balance over from month to month. Maybe not so perfect in the eyes of M&S.

Nasqueron

You have a balance on the card but you don't pay if off in full every month indicating you can't afford your lifestyle (how lenders judge it). See why the "perfect" credit score is meaningless?

Danipat

B_G_B wrote: »

This would imply that you sometimes / often carry a balance over from month to month. Maybe not so perfect in the eyes of M&S.

I dont think so, if I didn't have any credit and didn't need to lend any money then no doubt I wouldn't even get a loan. You just cant win

Danipat

Nasqueron wrote: »

You have a balance on the card but you don't pay if off in full every month indicating you can't afford your lifestyle (how lenders judge it). See why the "perfect" credit score is meaningless?

If I didn't need to have any finance and had plenty of money l wouldn't be able to get any credit.

I didn't need to have credit cards, I only got them because I couldn't get any finance and wanted to improve my credit score/rating, whatever you want to call it.

I do usually only have £100 on there every month and pay it off every month, its only recently after having a lot of outgoings have I not paid the balance off in full.

foxy-stoat

Again - that is all well and nice. Based on your circumstances the rate of 5.9% is all they can offer you.

If you had no credit cards and no credit history the rate would probably be a lot higher.

Maybe after M&S have agreed the minimum amount of loans at the headline rate to allow them to advertise it - now 5.9% could be the next cheapest.

Ever wonder why Currys can advertise laptops with a massive 50% saving off the RRP then have to put in very small print, full price advertised for 4 weeks. Otherwise it wouldn't be a "true" saving. Its just marketing BS as " the full price " has just been inflated for a month.