Hitachi cheapest loans - but you wont get that rate

PeteinLondon

Hi



Just saw that MSE is recommending Hitachi as the Cheapest loan provider... let me suggest - You wont get their cheap rate, unless you really, really dont need a loan


My experience
I had a loan with Hitachi for an eye treatment - the optician arranged the loan - it was £2400 at 0% over 2 years. I had a perfect payment record and was due to pay my very last instalment, of £100, when I moved house.


I wanted to borrow £5000 to cover general moving expenses, some new bits of furniture, etc


i saw that Hitachi were offering a good rate (I think it was 3.3% at the time) and asked them for the loan
they said I could have the loan but my rate would be 16%


Obviously, I queried this. I was an existing customer with a perfect payment record. and due to pay off my loan
I have a decent job with a decent income, in a government contractor (with security clearance, CRB check, etc). bank account for 20+ years, etc etc
nope they (said they) double checked and the rate was 16%, take it or leave it


I approached my bank and got a loan at 5%



Basically, they fish for new customers with a low interest rate, but it is totally unachievable, unless you really, REALLY dont need a loan

boo_star

PeteinLondon wrote: »

Basically, they fish for new customers with a low interest rate, but it is totally unachievable, unless you really, REALLY dont need a loan

They need to offer the headline rate to at least 51% of successful applicants. There's no way they could pull that off if they were doing as you suggest.

BoGoF

Non-story.

Someone will have had same experience with any lender in the country.

DCFC79

Pete theres no need to feel hard done by, you just didn't fit the criteria to the get the headline rate from Hitachi, its as simple as that.

SPOWER

I just done the application. I wanted 5K over 60 months so I could get new carpets throughout and furniture for 4 rooms from Ikea.

It said at the earlier stage I would pay back about £500.

When the application went through it said I will be getting 10% interest rate and would be paying back £1500.

Hitachi can stick that up their nat king cole. Their stereo systems were crap. The TV's were crap. Their loans are the same.

DCFC79

SPOWER wrote: »

I just done the application. I wanted 5K over 60 months so I could get new carpets throughout and furniture for 4 rooms from Ikea.

It said at the earlier stage I would pay back about £500.

When the application went through it said I will be getting 10% interest rate and would be paying back £1500.

Hitachi can stick that up their nat king cole. Their stereo systems were crap. The TV's were crap. Their loans are the same.

Its how the cookie crumbles.


A 0% card might be a better option, maybe wont get the 60 months but no harm in trying.

PeteinLondon

This is more of a warning than a complaint.

As the Hitachi loan is being recommended on the MSE front page, I think it's only right to give people fair warning.

I outlined my circumstances, and - without trying to be egotistical - my thoughts are 'If I dont qualify for anything but a 16% gouging rate, then who the heck does?'



I found your reply incredibly condescending. I dont think you can write of my experience as 'Dry your eyes that's how the cookie crumbles'



as I said, I eventually got a decent rate with my bank, and everything my end is quite hunky-dory thanks

redpete

PeteinLondon wrote: »

I outlined my circumstances, and - without trying to be egotistical - my thoughts are 'If I dont qualify for anything but a 16% gouging rate, then who the heck does?'

Who the heck does? At least 51% of people who are successful in getting loans.

ndf9876

Fake news. At least 51% get the advertised "headline" rate; just because someone doesn't get it should not mean a warning of any kind is needed.

reason2

chances are they have given you the initial loan, made no money out of you and now want to make some. if they arent going to make money out you they wont want to lend on a low rate again.

Clive_Woody

Pete, as you are moving then there will most likely be mortgage searches showing on your credit file, plus I don't think you mentioned if you have other outstanding debts (loans, CCs, overdraft, etc...). This alone may account for Hitachi seeing you as a higher risk and therefore increasing the APR on their loan offer.

You also state that you are a contractor rather than a permanent employee, again a risk factor that they may consider (not sure CRB check or government security clearance has any bearing on loan applications....not that I have heard of)