Offered Higher APR for Loan - How does this affect another application with different lender?


I have applied for a loan having carefully looked at the credit club affordability etc. had 95% chance of being accepted.

Applied for loan but instead of the 6.5% advertised rate, they have accepted application but offered 10.9% APR.

I was aware this could happen, but like most people, hope it doesn't and the only way to find out if to actually apply. This offer now makes a difference of around £2000 more in repayable interest which is a crazy amount.

Could someone explain how this application actually affects me making another application with a different lender to try and get a better rate before I go ahead and try another lender? I know it marks your file, but will this now stop me getting lower rates from anyone else? I can't seem to find any information on what to do if you don't get the advertised rate and don't want the increased offered rate!

Many thanks!


  • It will just show as a search.

    It's up to the next lender to decide whether they feel that impacts your risk.

    On its own, on a good file, it's not an issue.
  • Thank you. I will take the risk and apply with another lender! My credit score is excellent and all the affordability calculators were coming out as good so fingers crossed.

    Thank you for your reply!
  • MorningcoffeeIV
    MorningcoffeeIV Posts: 1,925
    First Anniversary First Post Name Dropper
    edited 21 October 2023 at 10:16AM
    Your credit score isn't a factor in lending.  It's just a little fun gimmick that only you see and doesn't reflect what lenders are looking for.
  • th081
    th081 Posts: 125
    First Post First Anniversary Combo Breaker
    OP - what's the value of the loan you are looking to get?
  • Also, don't take MSE Eligiblity checker or Clearscore/Credit Karma as gospel etc, go direct to the lender after using these checkers and then check with the lender directly, some will give you a guaranteed APR as part of the soft search check.
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