LOAN INTEREST RATE DIFFERS FROM ADVERTISED RATE

kimwp

Deleted_User said:

Jamesyb123 said:

Lover_of_Lycra said:

Jamesyb123 said:

Very few people will ever get the promotional rate it’ll be for customers with near perfect credit histories. The percentage does seem a little high however if you have a good credit history maybe just shop around rather than wasting time complaining as it won’t get you anywhere 

51% of successful applicants isn’t very few it’s the majority of successful applicants. 

It’s not a huge amount really as there will only be a certain pot of eligible customers anyway so as a percentage high yes but the amount of customer fen eligible for a loan at that cheap of an APR wouldn’t be massive

Lenders are free to be picky, so long as 51% of successful applicants get it, they have met the law. They are not required to lend. If they only offer it to 10 people, provided 6 get the rate that is fine. 

Actually, it's as long as they reasonably expect 51% or more of the successful applicants to get that apr according to the criteria. So if fewer than 51% get the APR but they can show they made reasonable assumptions if audited, them they are in the clear.

strawb_shortcake

I have a high credit score (I know it means nothing) but my loan affordability is only fair, in part this is due to me utilising very little credit, they assume my outgoings match the national average - they don't, it assumes due to my salary I have little disposable income, whereas I can easily save £600 a month. Unlike mortgages loans base their offer rates on what it assumes you spend a month and not based on actuals.
Both my banks had pre-approved me for loans with 2.9% I don't need a loan so not sure this would follow through to what I have been offered? 

[Deleted User]

Oh dear, the OP clearly didn't like the responses and has requested his/her account be deleted.   

Thrugelmir

annabanana82 said:

I have a high credit score (I know it means nothing) but my loan affordability is only fair, in part this is due to me utilising very little credit, they assume my outgoings match the national average - they don't, it assumes due to my salary I have little disposable income, whereas I can easily save £600 a month. Unlike mortgages loans base their offer rates on what it assumes you spend a month and not based on actuals.
Both my banks had pre-approved me for loans with 2.9% I don't need a loan so not sure this would follow through to what I have been offered? 

Mortgage lenders use ONS data in the same way all finance companies do. Underwriting at micro level isn't practical. Risk is priced based on statistical data. 

lordmountararat

It could be something as simple as them having filled their quota of low interest loans for the month. It's nothing personal.

cymruchris

Lover_of_Lycra said:

Oh dear, the OP clearly didn't like the responses and has requested his/her account be deleted.   

So we'll never find out how they got on with their appeal to the ombudsman or the FCA or Boris Johnson....

[Deleted User]

Jamesyb123 said:

Very few people will ever get the promotional rate it’ll be for customers with near perfect credit histories. The percentage does seem a little high however if you have a good credit history maybe just shop around rather than wasting time complaining as it won’t get you anywhere 

do you know what a good credit history is?

I see that term thrown around a lot on this forum, but is anyone actually willing to chime, on what is a good credit history? I mean that is afterall what the CRA scores are based around primarily.

I'm really eager to hear what the forum deems as "good credit history".

cymruchris

Adams18 said:

I'm really eager to hear what the forum deems as "good credit history".

Varying members will have varying opinions on what a 'good credit history' is - however as has been discussed over many threads including your own, lenders have their own scoring criteria for their products. Each lender has a unique criteria. Nobody knows what that criteria is. 

However the broad definition would be someone that used credit from time to time, kept up all of their commitments, didn't only pay minimum payments, didn't maintain high interest bearing balances for long periods, were registered on the electoral roll, didn't have any defaults/CCJ's, no CIFAS entries, had their accounts a long time, their debt to income ratios were fairly low, the list could go on and on. 

But - there is no definitive list of you need to have an account open  for X months or a credit limit of Y - it's not that black and white.  It's all part of an overall scorecard that some will say yes and some will say no even with the same set of circumstances presented. 

Remember this is a forum - full of people with views and opinions - some helpful - some less helpful - but still views and opinions.
 
The only people with the FACTS are the lenders themselves - and you'll not be getting that kind of information out of them.