Loan question

nickybubbles

Hi, ive just applied for a loan and been accepted.
I dont want it because the increased interest rate 2.5 to 34.5 makes to pointless and not possible to pay off.
I still need to find a loan, but will that application now go against me?
Other companies may think ive just taken out a loan.
There is no cancel application button

sourcrates

You will usually have 14 days to withdraw from the agreement, you should contact the lender.


If that is the rate you have been offered due to your credit profile, then its unlikley you will be able to beat it, have you checked your credit files to see what information is on them ?

nickybubbles

Thanks, yes i have and according to that profile, its above average.
Im just a little annoyed that this is allowed.
Effectively, they said i had a 90% chance of getting that loan at 2.5%. Which is why i applied. They then change the peramiters of that loan and my credit rate would have been effected because of that application. I wouldnt have applied if i had seen the proper offer before hand.
Its a bit underhand

Willing2Learn

It isn't underhand. It is probable that you just didn't read the small print during the quotation process.

nickybubbles wrote: »

yes i have and according to that profile, its above average.

What is above average? Your 'credit score'? Ignore your 'score' as lenders don't use it. They just use the raw data in your files that show how well you manage credit accounts. It is the data you must check.

What negative data is in your credit file? Any missing payments, late payments, defaults etc? Are you on the Electoral Register at your current address?

YorkshireBoy

Who said you had a 90% chance? And are you sure "they" weren't referring to acceptance rather than acceptance at a particular rate?

sourcrates

nickybubbles wrote: »

Im just a little annoyed that this is allowed.
Effectively, they said i had a 90% chance of getting that loan at 2.5%. Which is why i applied. They then change the peramiters of that loan and my credit rate would have been effected because of that application. I wouldnt have applied if i had seen the proper offer before hand.
Its a bit underhand

Well thats effectivly why you should never rely on what your credit score says, credit reference agencies are not lenders, so they can only guess based on your profile, as to the liklihood of acceptance for any credit product.

Once the real lender has credit checked you, you get a more accurate idea of your credit worthiness.

And remember, the headline rate has to be offered to 51% of applicants, so the other 49% get the worst rates.

nickybubbles

Firstly, i did read it and understood it
My point is that they do not give you the relevent interest rate until you have applied. This imo is too late.
When i applied, there was no negative data. None.
It would have been more helpful if you had answered my question.

nickybubbles

Thankyou, so what your saying is that these credit score aps are really just a guide and not really worth having.
Thats good to know, and interesting too

nickybubbles

That would be the loan company that was suggested to me from doing the check on this app.
My point is, that if i had known the correct calculation, i would not have applied, therefore i would not have now damaged my credit score.

YorkshireBoy

nickybubbles wrote: »

That would be the loan company that was suggested to me from doing the check on this app.
My point is, that if i had known the correct calculation, i would not have applied, therefore i would not have now damaged my credit score.

It's not what you want to hear I'm sure, but your credit rating (as determined by lenders' scoring criteria, not some intermediary) must already be "damaged" to be offered a rate as high as 34.5% APR. That's sub-prime credit card rate territory!

Kentish_Dave

The percentage probability is of being accepted, not of being given the headline rate. They cannot give you the rate ahead of applying as they don’t have the relevant facts at that point.

The rate you’ve been given suggests some issues with your credit history, any idea what the issues are?