Sainsbury's Personal Loans - Be Warned

redux

The typical sweet spot range for interest rate seems to be on loans between £7500 and £15,000.

If you've applied for £3000 or £5000, you might do better to go for £7500 and repay a chunk at the start.

On the other hand, on a more modest size the interest difference isn't as significant anyway.

Lioness_Twinkletoes

Tiney46 wrote: »

Hi all,


First post on the forum and wanted to start with this one, like many trying to find a good deal you someone times do find you get messed around and always say to yourself I should really let others know, So they are not caused the unnecessary grief/stress but never do. Well this time I said I will!


Last week me and my Wife had a Car MOT which passed but highlighted a few items which got us into thinking maybe its time to retire the old girl. Mazda 3 great car BTW owned for 8 years and cost us only £350 of "non-consumable' Items in that time.....that led us to find a new motor and the now the need to find a suitable Loan to cover the cost.....because well car finance BAH! Some crazy person told me to offset it on the mortgage!!!! I smiled nodded and walked calmly away.


Onwards to MSE I said and started browsing the lowest APR loans and .....well WOW I said 2.8% and 2.9% I thought I'll have myself some of that and decided on applying to Sainsbury's after a few minor questions mostly name and am I a home owner and not a lot really that I deem that important with a loan application like lets say....monthly wage/mortgage cost each month it said my application had been put through. The following morning I get an e-mail to say the loan acceptance paper work was on its way first class. (This was Wednesday 3rd april 2019) and so we put money to hold the car we chose as the e-mail didn't state anything else to cause concern. I even phoned them to make sure no details had changed on Monday 8th april 2019 and to chase where this first class post had gone after 3 working days with still nothing?? This morning the paperwork arrived and as we were now running out of time on them holding the car my wife drove with both of the children across town to deliver it to me to sign and get in the post that night. HERES THE IMPORTANT BIT - ALWAYS READ THROUGH SOMETHING THAT IS A FINANCIAL BOND BEFORE YOU SIGN! Firstly I flip through the pages to see where I had to sign but decided to wait and just do a bit of proof reading first and I'm glad I did as the paperwork stated that they had approved the application but at the interest rate of 5.2%!!


Now before you all go oh yeah I bet this guys financial background is in absolute ruin and he thinks he can get a loan because MSE/Experian rate him at 990/999 Noodle rate me at 4.8/5 I don't but its a slight indication that I have a good credit background when I've chosen that credit is the only way to pay.


I'm pretty sure I know why the rate went up so much and this is because there system probably aren't as thorough or well designed as a REAL BANK like not to mention any names *Cough* Lloyds as they don't know the overall picture of my finances as after all they are good at what they do selling carrots and tatters not lending money. They see I have very little disposable income as when I'm paid, my account (visible to them) is then emptied to a joint account (Blind to them) leaving myself some spending money for the month and everything left over goes into a combined savings pot. My choice of good money management but probably not the best when it comes to lending.


Just a side note at this point as financially I am known to Sainsbury's after they approved a loan for our wedding back when they had the acceptance rating system and I scored 98% and then was instantly declined....WT*! I rang them and they informed me that it was a computer error on their side and it was shortly approved. And paid every month without fail for the next 4 years.....I am a nectar customer and always fill up my company car 40,000 miles annual with them. also shop sometimes with them as there the closet (Probably set to change in the future). - So they should have a rough idea.


Verdict: The whole process took 5 working days to get the paper work which was not what I had applied for and frankly a complete waste of time - a further who knows how many days if I had signed until the money was in my account is unknown.


What I did then: (Time frames are completely true and I'm having to do it by the minute here)
Went to my bank *cough* Lloyds 17:00 Online
Reset my password and memorable information - I'm only human :rotfl: 17:10 (PlusNet mobile down so took longer as the call wouldn't go through..I know not my day)
Used easy Loan calculator to chose loan amount and repay term 17:20
Clicked complete.
The next bit is no joke checked my account 17:21 Money not present but deposit showing
17:22 +£15,500 (Job Done)


Bottom line and figures
Lloyds rate was 3.90% over Sainsburys 2.9% but reality 5.2%
Lloyds completed their loan apply/acceptance and money in the bank within 22 mins
Sainsbury's..........Post.....THEY POST THEIR DOCUMENT'S in 2019! HAHAHA!
Stress levels going through Lloyds - 1/10 - where did I write that blo**y password down to!
Stress levels going and waiting for Sainsbury's snail mail....Sleepless nights and a very unhappy ending - Oi no jokes! it was awful.


THINK before you apply if time is a factor to avoid any unnecessary stress.


I hope this is an insight for anyone thinking of applying, not saying your app with be the same just wanted to highlight what happened.


Thanks for reading.....:j

Wow. I can't believe I actually read through that tripe.

Shortened version:

• OP didn't do any research
• Wasn't happy with APR for loan
• Got a £15k loan for a car elsewhere,

Moral: Do your research

vivaespana

Well I didn't mind that it was long - I think it is a true reflection of the loan farce that is taking place right now.

We all know the rules, we all know what the figures in our various credit reports mean, we all know they only have to offer 51% of customers the headline rate, but after that........... well it seems to be a complete and unregulated rate lottery!!!

I have been in a similar situation - but I already have a car with PCP, I simply want to take out a loan to pay off the PCP so that I can own the car outright (long story, but due to limitations on European travel on a vehicle on PCP with Mini Finance).

After being completely refused by Sainsbury, eligibility (yes I know it's only a guide) suggested I had a very good chance of an Admiral 2.9% loan.............I was offered 11.4%!!

The most annoying thing then is that all the advice (including MSE) of what to do if you are turned down for a loan etc is infuriating, especially when I imagine most of us on here did this before, not after, applying:

• Check your credit report regularly and correct any mistakes
CHECK Transunion and Experian every month
• Pay your credit agreements and utility bills on time
CHECK Never missed a payment in my life
• Close any accounts or financial products you are not using
CHECK Only have a bare minimum
• Pay off what debt you can, and steer clear of credit limits
CHECK credit cards paid in full every month without
fail,never get to even a fifth of the credit limit
• Be aware of financial links
CHECK Ex-husband is banished, all others on my reports
are legit

Finally, we are told to ask the individual company themselves - well they are very secretive about their underwriting criteria and "cannot give out sensitive information".
Apparently, they weren't really concerned at looking at my BTL mortgages, nor do they pay much attention to my PCP for my car but they cannot tell me what they DO look at. Even the underwriter would not allow their name to be given to me.
And because 11.4% is a formal offer (albeit a rubbish one) it cannot be reviewed!!!

Isn't it about time somebody challenged this lottery??

Now I have to decide whether to use my savings to pay off my PCP and then attempt a loan again to replace some of my savings (I need access to ready cash as I embark upon a career break to go travelling!).

Ebe_Scrooge

vivaespana wrote: »

Isn't it about time somebody challenged this lottery??

At the end of the day, no-one has a God-given right to receive a loan. It's a different argument if you're talking about these so-called postcode lotteries relating to something important such as the ability to access critical medical care or something. But the bottom line is - any company has the choice of whether or not to lend money to you. If they choose to lend money, they call the shots in respect of what they're going to charge. You're then free to accept or decline their offer. But you don't have an automatic right to be able to borrow money from anyone.

Also, bear in mind that lenders are not charities, they are businesses, with the sole aim of making money - nothing else. If that means they refuse to lend to you at all, or to charge you more than someone else, that's their prerogative. No, I don't work for a lender, I just have a realistic view of how businesses work.

macman

'HERE'S THE IMPORTANT BIT - ALWAYS READ THROUGH SOMETHING THAT IS A FINANCIAL BOND BEFORE YOU SIGN!'

Brilliant advice. Who would ever have thought of that?

vivaespana

Thanks Ebe Scrooge, my background and a business degree sort of helps me understand that these folks are not running a charity. And as for bringing God and medication into the equation.... well, not entirely relevant or useful.

I am sure you realise that I was trying to make the point that in order to protect our precious credit search histories we all follow the advice, get all our ducks in a row, go through eligibility checks, etc etc and yet once you input those numbers into the machine, it's still a bit of a tombola as to what comes out the other end.

Anyway, I took the plunge and spoke to a human at First Direct - job done, loan acquired at 3.3%.

D_M_E

Here's another who thinks 5.2% is not too bad, but what is bad is wanting to spenjd £15,000 on something that loses money from the minute you buy it - far better to find something which costs a lot less and maybe not need a loan to acquire it.