16.9 apr loan?

shiwen55

Hi, it's me again (posted few days back)


After applying for a loan from Halifax, I've just realized the APR is 16.9 over 48 months. That means comparing to a good loan rate, I'd probably pay £1000 extra in interest over 4 years.


I have a decent credit rating and been a customer with Halifax for years. I don't know why and what, but is 16.9 APR reasonable? I've checked my credit union, they have 26 APR for loans over £3000 and GMB credit union offers around 12-13 APR (which I closed my saving account with them sometime ago), that leaves with around £280 extra comparing to last one.


I doubt I can get an ideal APR if I don't get that with my bank (Halifax)


Regards,


shiwen55

System

16.9% APR is 2% higher than my credit card so I'd say no.

For whatever reason they've decided you present a higher risk so have given a higher APR. If you don't have much recent history of paying finance or things like mobile phone bills then that can be the reason, it doesn't actually have to be for bad reasons. As you've found out though your credit rating from the credit reference agencies doesn't mean much.

Just because you bank with Halifax doesn't mean they'll offer you a good rate, my son is with them and in my opinion they've screwed him with his mortgage he took out with them 6 months ago. Might be worth trying another application with someone else and seeing what is offered.

shiwen55

Tarambor wrote: »

16.9% APR is 2% higher than my credit card so I'd say no.

For whatever reason they've decided you present a higher risk so have given a higher APR. If you don't have much recent history of paying finance or things like mobile phone bills then that can be the reason, it doesn't actually have to be for bad reasons. As you've found out though your credit rating from the credit reference agencies doesn't mean much.

Just because you bank with Halifax doesn't mean they'll offer you a good rate, my son is with them and in my opinion they've screwed him with his mortgage he took out with them 6 months ago. Might be worth trying another application with someone else and seeing what is offered.

The unfortunate thing is I agreed with the builder to remove the wall and it's a matter of urgency (have promised Mrs. for few years). I tried Barclays, but their excuse was they couldn't find my address and turned me down !! That's another search on file.


If I humble myself, I could digest £250 extra a year that I'd pay more interest


Thank you

BoGoF

The rate offered suggests something amiss with your credit file - ignore your 'credit rating'. The fact Barclays can't find you would concern me.

Have you checked your 3 credit files?

Are you on electoral register?

shiwen55

BoGoF wrote: »

The rate offered suggests something amiss with your credit file - ignore your 'credit rating'. The fact Barclays can't find you would concern me.

Have you checked your 3 credit files?

Are you on electoral register?

I was just on the phone with Halifax and they said keep an eye on your credit score, once improved (?) say after 6 months, then call Halifax again and ask to refinance the loan and reduce APR


PS: It's Barclays fault can't find me, same address on all three credit agencies, checked

BoGoF

I think that's called telling you what you want to hear from Halifax......

DCFC79

Try another lender, maybe the rate offered is the best you can get. I bet the address could be the issue, maybe another lender could find you and the rate would be offered.

jonesMUFCforever

OP One very important piece of information missing from your post is how much you applied for?

shiwen55

DCFC79 wrote: »

Try another lender, maybe the rate offered is the best you can get. I bet the address could be the issue, maybe another lender could find you and the rate would be offered.

First I tried Barclays and couple of weeks later Halifax meantime Barclays has recorded a search that lowered my score, also I was still within my 6 months of opening my Costco Amex. I checked and Experian score was fair, that's why I think I have been offered this rate, but I'm happy, if Halifax is promising to reduce APR later, then it's a matter of waiting a bit more until my score has gone up again. At least they didn't offer me their 24 something APR !!


Thank you

shiwen55

jonesMUFCforever wrote: »

OP One very important piece of information missing from your post is how much you applied for?

£4000 over 48 months, I was looking for 6 etc. APR. I know big loans have lesser APRs

shiwen55

Halifax assistant was saying it's Computer who's making decisions, that's why and they can't change that