Why cant i get the advertised APR?

KECMSE

Im applying for a personal loan for home improvements. I work full time, i earn well above the stated minimum income, i have a close to perfect credit score, no other unsecured debt and no payment blips on my credit file. I am being refused the advertised APR and they wont tell me why. Is this allowed? Can they refuse to provide a reason...
Comments / advice will be appreciated?

BoGoF

There is no such thing as a perfect score so your 'near perfect' one means nothing. Of course it's allowed....only 51% will get the representative rate, you fall into the other 49%.

If you have no other unsecured debt then maybe a lack of credit history is going against you. What was the rate advertised and what were you offered?

MallyGirl

It will be down to credit history (not score), affordability, whether they have already filled their quota.
It is their choice as to what they offer you - and your choice as to whether you accept the offer

Nebulous2

If you go for the rates at the very top of the tables 2.8- 2.9% almost everyone who applies will have a very good history. They only have to give the advertised rate to 51% of people. They wont tell you why you were turned down. If they did people would play the system (including lie) to meet the criteria.

I'm convinced if you go a few slots down the table to loans at 3.3% or so you improve your chances quite a bit as the competition to be in that 51% is less intense.

Best rates are usually £7500-15000 for 3-5 years. Lower / higher amounts with or without longer / shorter periods don't do as well.


Have you tried an eligibility checker? They will give you some idea of your chance of success.

DCFC79

Kate.cooper87 wrote: »

Im applying for a personal loan for home improvements. I work full time, i earn well above the stated minimum income, i have a close to perfect credit score, no other unsecured debt and no payment blips on my credit file. I am being refused the advertised APR and they wont tell me why. Is this allowed? Can they refuse to provide a reason...
Comments / advice will be appreciated?

Yep of course its allowed, it would lead to applicants manipulating the credit history to get the headline rate.

What rate were you offered ?

Have you checked your files with the 2 other agencies ?

foxy-stoat

Another week, another thread about why I can't get the headline advertised rate.....You DID read all the terms and the statements concerning the interest rates.

They can do what they like, you don't have a right to the cheapest rates.

What rate did they offer you and how much was the loan for?

Caz3121

Your circumstances do not match with the lenders criteria for the representative rate....that is the answer, how does it help you?
You apply and there are 3 possible outcomes
1) sorry we do not want to lend you money
2) ok we will lend you money at x% (49% of successful applicants
3) ok we will lend you money at the representative rate (51% of successful applicants)
You fell into category 2 (better than being in category 1)

iolanthe07

Caz3121 wrote: »

Your circumstances do not match with the lenders criteria for the representative rate....that is the answer, how does it help you?
You apply and there are 3 possible outcomes
1) sorry we do not want to lend you money
2) ok we will lend you money at x% (49% of successful applicants
3) ok we will lend you money at the representative rate (51% of successful applicants)
You fell into category 2 (better than being in category 1)

Category 4: We have reached our target for headline rate loans this month, so will not be offering any more for the time being, no matter how good your credit history. We can't see your credit score because this is a meaningless made up number by people who don't actually lend money.

KECMSE

Thanks for your replies.
I did read T&Cs and was convinced I literally ticked all of the boxes to be offered the advertised rate.
I have revieved Experian & Equifax and no isses from either. Not even a blip... ever!
I do have a credit history. I have a mortgage (5+yrs) and that along with all bills etc are A1 paid and no unsecured borrowing.
I have a decent income. I just dont understand what box im not ticking for them?!?!?
Im literally baffled at what they could possibly want... what do these 51% have ?

Gaz83

Kate.cooper87 wrote: »

Thanks for your replies.
I did read T&Cs and was convinced I literally ticked all of the boxes to be offered the advertised rate.

Why?

They don't specify what these metaphorical 'boxes' are.

And as has been said, maybe they've just met the 51% requirement this month. No financial incentive for them to give more people the headline rate than they're legally required to.

KECMSE

I applied at 2.9 and they are offering 5.9. I know that is not ridiculous but still its not the advertised rate!