Ratesetter advice

Nashefc

Hello,
I am wondering if anyone has had experience with Ratesetter, I was initally quoted 2.8% for a £7500 over 5 years loan for a car purchase and was pre approved. My current account is with LLoyds and they provided a personlised rate of 3.9% if accepted. I have spent a lot of time clearing credit cards and only have one remaining on 0% and under 50% utilisation rate. I have had a Mortgage for 7 years now and never miss a payment. 

I am tempted with the lower rate but unsure of the risk as don't know much about them and the reviews seem good but a bit too good if that makes sense! Is the current account more strict as they have more access to my statements so can see all my spending habits, occasional gambling, paypal transactions (pay most things through PayPal) and buy and sell through Paypal. Also have a joint account where I put money in to cover bills and receive money from my joint account as and when.

Or do you guys think it is okay to opt for both and see what they come back with. I have scouted other banks and got good eligibility rating but do not trust the APR provided and have been stung in the past few years ago with AA loans where the advertised rate was tripled. 

Thanks for any advice first time actually going for a loan.

macman

I think you are confusing the representative rate with the actual rate. The representative rate is what a minimum 51% of lenders will get: the rest will pay more. No one can advertise a 'general rate', as they have no idea what your credit-worthiness is it that stage.

Nashefc

Well Lloyds actually do say if accepted you will get the personlised rate offered. Ratesetter granted may increase but by all accounts not by much.

sammyjammy

I've used Ratesetter a couple of times, they are pretty established and very easy to deal with.

CSL0183

No issues at all with ratesetter loans. Had a couple over the last 5yrs or so and the rates are competitive. Online portal easy to manage. 

Bigphil1474

I had a Ratesetter loan, went smooth, reasonable rate, and was able to pay off early. Website is easy to use - all good with them. If you've been offered 2.8% with them, then I'd recommend accepting it. If, as others say, it is a representative rate, then I'd get an actual rate from them. It does sound cheap.