Got accepted for loan then found better rate elsewhere

oliel · 29 December 2021 at 4:47PM

Thought I would share my experience - applied for a loan with tesco online paperwork was sent out and signed and sent back but there was an error on the name i didn't spot so they had to do another credit check and send new paperwork out the rate went from 8.9 to 13.2!!! I needed the loan but not at this rate so i decided to take the loan and apply for another loan elsewhere - well i got another loan with sainsburys - 9.9 so i cancelled and repaid the tesco loan and took the sainsburys one. saved myself £1800 on interest. (ok 1% more than originally offered by tesco but still better than 13.2 - moral of story check paperwork properly and shop around if not happy with rate offered.

Brie · 29 December 2021 at 4:50PM

I wonder why a simple correction to the name would have changed the interest rate.

MallyGirl · 5 January 2022 at 10:47AM

as part of the loan checks they will be looking up the person on various databases to see their credit status (CCJs, existing debt, CIFAS markers etc) - an incorrect name might mean that a poor entry was not matched to. Once the name was corrected a match might then be made and the rate would be reassessed.