Loan offer

jsol150772

Hi, after checking on MSE site for loan compatibility I applied for a loan with M&S bank at 2.9% which the site (MSE)said I had a 95% chance of getting (loan amount 10k). I was immediately accepted but with an APR of 5.9%! My credit score is rated excellent . The loan is to pay off a buy now pay later loan that is due to be paid up in April . 

Having just applied for this loan can I apply for another with a different bank and see if I can get a better APR or will I , because there is now an application from M&S on my report, now get offered similar or worse APRs ? 

Thsnks 

[Deleted User]

You can try one more search. 

Lenders assess you on risk, not on your excellent credit score, so it depends on their criteria. Carrying existing debt is going to be a significant risk factor.

DrEskimo

Just to clarify, the eligibility check suggesting you have 95% chance of success is based on being accepted, not on being accepted for a loan at the headline rate.

jsol150772

Deleted_User said:

You can try one more search. 

Lenders assess you on risk, not on your excellent credit score, so it depends on their criteria. Carrying existing debt is going to be a significant risk factor.

I see what you are saying , obviously they can’t see that I intend to pay off the existing debt with the loan I am applying for 

ManyWays

MSEis asking about this at the moment so you could leave a comment on https://forums.moneysavingexpert.com/discussion/6330386/have-you-applied-for-a-personal-loan-then-been-offered-one-with-a-higher-apr-than-advertised/p1

[Deleted User]

jsol150772 said:

Deleted_User said:

You can try one more search. 

Lenders assess you on risk, not on your excellent credit score, so it depends on their criteria. Carrying existing debt is going to be a significant risk factor.

I see what you are saying , obviously they can’t see that I intend to pay off the existing debt with the loan I am applying for 

They can't see that and indeed, even if they did, they wouldn't consider it because you could easily spend the money on something else or run up another BNPL debt and have 2x the debt again

Edi81

5.9 is still a good rate!