Haven’t received guaranteed pre-approved APR Rate

Blaneclorley

Hi,

I’ve recently been looking for a loan to consolidate an existing loan and carry out home renovations to the sum of 15-18k and settled on a pre-approved 100% guaranteed apr of 3.9% with rate setter over 4years yet when I’ve accepted this, submitted my docs the rate jumped up to 19.8% when they’ve asked for my signature. 

I’ve asked rate setter about this and say I should get the lower rate so they’ve raised a complaint, any ideas why this happened and or how I can resolve this quickly? 

[Deleted User]

It'll have happened when they did final checks. There should be wording to this effect in the offer.

You can't resolve it unless they're feeling generous and are willing to lower the rate.

Blaneclorley

Dare I ask what is the point of the pre indication checks then on loans and cards? Because majority of mine say 90% and above chance of getting a stated rate then theres always the caveat that 50% of applicants get the rate… very misleading. But I also thought the the whole purpose was to get the stated pre-approved rate? And it’s guaranteed..otherwise I wouldn’t of applied. 

Plus I don’t understand why I can’t get the better rates anyhow my credit rating is rated excellent, I make regular payments and never missed payments so I’m just stumped as to the struggle..

[Deleted User]

The pre indication checks give you an idea of what you may get. The result cannot be guaranteed until you apply.

Your credit rating isn't a factor in lending - that's just a rating the CRAs give for entertainment purposes..  If you're carrying existing debt, are looking to borrow more and need to consolidate, you're always going to be a higher than normal risk.

MrFrugalFever

Was this check done via ratesetter direct?

Good luck with the complaint, I hope they revert your APR back to 3.9%.

F1shyFingers

Blaneclorley said:

Dare I ask what is the point of the pre indication checks then on loans and cards? Because majority of mine say 90% and above chance of getting a stated rate then theres always the caveat that 50% of applicants get the rate… very misleading. But I also thought the the whole purpose was to get the stated pre-approved rate? And it’s guaranteed..otherwise I wouldn’t of applied. 

Plus I don’t understand why I can’t get the better rates anyhow my credit rating is rated excellent, I make regular payments and never missed payments so I’m just stumped as to the struggle..

I agree that the idea of being pre-approved is nonsense if you're not guaranteed to get the loan or credit card.

This is, however, the market you're getting into.

Just did a quick check on Clearscore and the bumpf says

You'll get this product if you apply for it, as long as you pass any additional lender checks and all the details you have given us are correct. This is why pre-approval is not guaranteed.

martinbainbridge1975

Blaneclorley said:

Dare I ask what is the point of the pre indication checks then on loans and cards? Because majority of mine say 90% and above chance of getting a stated rate then theres always the caveat that 50% of applicants get the rate… very misleading. But I also thought the the whole purpose was to get the stated pre-approved rate? And it’s guaranteed..otherwise I wouldn’t of applied. 

Plus I don’t understand why I can’t get the better rates anyhow my credit rating is rated excellent, I make regular payments and never missed payments so I’m just stumped as to the struggle..

Had the very same argument with MBNA a couple of years ago - wanted 15k for a loan had the affordability and got declined for 2.8 rate despite high credit score. as many people are correctly saying on this forum an individual credit score is becoming a waste of time.

When questioned they could not give a justified answer and would not overtur.n, in the end I went to Tesco and got approved at 3.4 with no hassle at all

MattMattMattUK

martinbainbridge1975 said:

Blaneclorley said:

Dare I ask what is the point of the pre indication checks then on loans and cards? Because majority of mine say 90% and above chance of getting a stated rate then theres always the caveat that 50% of applicants get the rate… very misleading. But I also thought the the whole purpose was to get the stated pre-approved rate? And it’s guaranteed..otherwise I wouldn’t of applied. 

Plus I don’t understand why I can’t get the better rates anyhow my credit rating is rated excellent, I make regular payments and never missed payments so I’m just stumped as to the struggle..

Had the very same argument with MBNA a couple of years ago - wanted 15k for a loan had the affordability and got declined for 2.8 rate despite high credit score. as many people are correctly saying on this forum an individual credit score is becoming a waste of time.

When questioned they could not give a justified answer and would not overtur.n, in the end I went to Tesco and got approved at 3.4 with no hassle at all

Credit scores are not becoming a waste of time, they are and have always been a waste of time. Some of thr things that increase the pointless scores are things which lenders would view as making the individual less creditworthy. 

Sncjw

Also when you think about it your adding debt to the current debts you have. They will be assessing you on affordability and risk of all the debt combined as there's no garuntee you will pay the current debt off.