Tesco Loan

superM

Hi, I am looking to apply for Tesco Loan.  One of the question it asks totals credit card limit.  I have a very large credit limits on several cards. 

I wonder if anyone applied with too much available credit and still got accepted with Tesco Loan. 

The acceptance were showing 80% with there eligibility checker. 

Thanks 
MS 

cymruchris

Nobody can define what 'too much available credit' really is. A whole host of info is taken into account for any financial application. So they'll be looking at a myriad of info, which means that there's no simple or easy answer to your question. If you are using a small percentage of your limits though, you may be seen in a more positive light than someone that has running balances close to the upper limits on a continuous basis over a long period of time. 80 percent means that 8 in 10 will get a loan offer - 2 in 10 won't. You could be one of the 8, or one of the 2. Nobody knows. Did you try the eligibility checker directly on Tescos website?

Also remember that they might mention an APR of 3.2 percent representative - that doesn't mean everyone will get that rate - only around half that get the loan are required to be given this APR - other higher risk customers might be offered a higher APR - so be careful and look at the detail if you decide to apply.

superM

Thanks for replying. Yes I have looked at the loan eligibility via the Tesco website and MSE website which both showed 80%. 
.
I am aware of the APR but I will not know until I apply. The total card limit is well above my annual salary and that's the reason I was thinking that might effect my application.

It would have been good if on a soft search they could have said what APR you likely to get. 

Ebe_Scrooge

superM said:

The total card limit is well above my annual salary and that's the reason I was thinking that might effect my application.

There are plenty of people who have available credit in excess of their salary.  That in itself is not a problem as such - how you've managed your credit in the past is far more important.  As the previous poster said, credit scoring (by which I mean the lender's internal scoring algorithms, not the nonsense score dished out by the CRAs) takes into account many different criteria, and will differ from lender to lender as to the relative weighting they give to each factor.

But some factors are common to all lenders - for instance, if you're carrying a balance on an interest-bearing card from month to month, this can be interpreted as a sign that you're struggling to keep up with your debts.  But spending on a card regularly, and always paying in full every month is generally seen as a positive.

superM said:

It would have been good if on a soft search they could have said what APR you likely to get. 

By its very nature, a soft search doesn't give a full picture of your credit history, so any indication of what APR you'd be offered would be a very rough approximation at best.  It's only when they've done a hard search and crunched all your data through their algorithms that they can make a decision on whether, how much and at what rate to lend to you.