Last time I use loan eligibility checker

The_Jester

I've used the loan eligibility checker on this site twice now. On both occasions the APR rate I've been offered hasn't even came close to what this site indicated it might be.

I know it's indicative but stating I have a 95% chance of getting a 2,9% APR rate from Admiral and then being offered 8.2% isn't even close.

Now for the second time this has been marked on my credit file. :mad:

Gaz83

I could be wrong, but I believe that only you can see the search that's been made, and other lenders can't.

And it's only ever going to be a best-guess estimate, because lenders keep their lending criteria confidential.

BoGoF

It's my understanding that loan eligibilty checkers only relate to the chances of getting a loan not the specific APR.

The_Jester

Well its supposed to be 'best guess' mate but it obviously falls short. I'm not particularly bothered about the loan as I have the cash but at 2.9% over 5 years I thought the pay back was worth it and I can keep my cash for emergencies.

I expected to be offered around 3.2% but never in a million years 8.2%.

Now it's on my credit score. That's what annoys me.

The_Jester

BoGoF wrote: »

It's my understanding that loan eligibilty checkers only relate to the chances of getting a loan not the specific APR.

If that's the case it's misleading because it had 2.9% APR in big bold letters.

Gaz83

The_Jester wrote: »

Now it's on my credit score. That's what annoys me.

You don't have a credit score, so that's always a bonus.

Voyager2002

Gaz83 wrote: »

You don't have a credit score, so that's always a bonus.

This and your previous comment show an inability to read a post before responding. The OP applied for a loan on the basis of information shown by the tool on this site, and while his use of the tool leaves no footprint there is obviously a record of the "hard search" that the lender would have performed before being offered the loan. Details of this hard search remain on the OP's credit record, and so will affect any score calculated by any provider of financial services in assessing future applications that the OP may make.

Candyapple

The_Jester wrote: »

Now for the second time this has been marked on my credit file.

If you did a hard search with Admiral, who was the other lender you did a hard search with and what was the APR they offered?

Have you applied for any other forms of credit recently apart from those 2 applications?

The_Jester

Candyapple wrote: »

If you did a hard search with Admiral, who was the other lender you did a hard search with and what was the APR they offered?

Have you applied for any other forms of credit recently apart from those 2 applications?

The last time I used the tool on here was a few years ago. It wasn't recently. But again when I performed the hard search it was way above what was estimated on the online tool here.

No other credit searches for at least a year or so and that was for a new phone contract with Voda. Before that god knows. Experian tells me my credit score is excellent.

The_Jester

Gaz83 wrote: »

And it's only ever going to be a best-guess estimate, because lenders keep their lending criteria confidential.

That's my point. The best guess isn't even close.

Imo they keep their lending criteria confidential because I earn above average salary and they up the interest rate because I can afford it and they think I'll just agree to it.

As a comparison I called my bank HSBC who told me their representative rate is 3.3% APR but after giving all my details they offered me 7% APR. The difference was they performed a soft search which won't show up on my credit scoring.

No big deal I told them I'll just leave their bank if that's their game. So I joined First Direct just now. If everyone done this perhaps the banks would stop their silly games.

macman

What this is telling you is that your credit status is not as good as you think it is. The lender decides if you can afford it, not you, and you are clearly being perceived as higher than average risk.
It's nothing to do with 'charging you more because they know you can afford it'.