Barclaycard Loans Do Not Use

SarahSincs

I Am Furious I Have Applied For A Small Loan Through This Website And Was Told It Would Be A Typical Rate Of 6.8% ......... I Recived My Offer Letter This Morning 23.9% Is The Rate I Have Been Offered, I Called To Clarify This And Barclaycard Said "its Because Your Credit Rating Is Bad" And Then I Checked My Scoring With Experian Online And My Score Is 885, Basically 1000 Is Great Socring So Mine Is Very Very Good, I Called Them Back And Asked How They Get To Offer Me Such A High Interest Rate And He Said It Was Due To Credit Scoring ... I Said Ok Mine Is 885 Which Is Very Good According To Experian, He Told Me Nobody Uses Experian Anymore And That Nobody Within Barclaycard Could Tell Me The Criteria They Used To Decide My Interest Rate !!!!!!!!!!!!!!!!!!!!!!!! I Am Furioussssssssssssssssssssssssssssssssss

talana

Don't see why you're furious.
Disappointment at the rate you're offered I can understand, but why furious?

- I'm amazed this surprises you so much. Has the credit crunch passed you by till now?
- Credit scoring is so much hot air really, there's no such thing as a "good" score. Plenty of people with scores of 900+ have also been hit in the credit crunch, so you're not alone.
- And yes, they will use their own criteria in deciding whether to loan to you and at what rate. Again, no surprise. Nobody has the right to credit (and certainly not at the rate of our choosing)

lawrie28

The problem is, that banks don't have much money to lend at the minute, therefore, when they do they want to make lots out of it to keep the profits up. The technique that Barclays have used is the "price yourself out of the market" technique. THey have not insulted you by refusing credit, but have made sure you take you business elsewhere, so they can use the cash on a deal which they can get a better return. Ok the rate is insulting, but if they can use the cash on a deal with more security (property loan, secured loan, credit card etc) they will do that. don't take offence, just go elsewhere

jonesMUFCforever

Typical 6.8% it says not guaranteed for you at 6.8%
How much were you applying for?

The scores you got from Experian are less than worthless.
It is not them lending you the money.

Barclays has been hit particularly hard by the credit crunch and only a1 customers will get the best rates.

paulpud

I too applied for a loan with Barclaycard last week. I wanted to borrow £5000 over 2 years just to replace savings that I'd used to buy a car. The online quotation indicated that I could borrow the money at 6.8% APR so I completed the online application. I didn't expect any problems as I believe my credit history to be faultless, of which Barclaycard might have been aware as I had their credit card (until I cancelled a few weeks ago) which had an £8000 limit and a cleared sizeable balance every month. The next working day I received an email congratulating me on being approved for my loan and inviting me to contact their 0800 number so that their 'friendly loans customer service team' could confirm my rate and repayments. I ignored this suspecting it would just be the PPI hard sell and, naively, thinking that my rate and repayments might just be the ones indicated when I had my online quote! I did visit the loans webpage to see if I could contact them online to avoid the phone call and request my application forms, but no such form of contact was listed, only the 0800 number. Instead, I used a general 'contact us' form, to which I received an instant automated email and, next day, an email with a link to assist my request, which took me back to the page with no online contact and the 0800 number! Very helpful! Next day, my application arrived - 13.9% APR!!! As a comparison the authorised overdraft on my current account is only 9.9% APR. I called the number on the form hoping that they could perhaps shed some light on why I would now be required to pay double the quoted interest, but the call centre muppet could only keep repeating his prepared statement of how the rate depends on the information given. I have a suspicion though that the rate would have been considerably lower had I taken PPI. I must have been something of a risk having worked for my employer for only 25 years! Anyway, I told them to stick it and went to yourpersonalloan.co.uk and got 6.9% APR. I did have to call them as there was 'some information missing from my online form' (although you couldn't submit it without filling in every single box) which a cynic might suggest was an excuse for the PPI hard sell that followed. But I survived it and am now waiting for the form to arrive in the post.

jonesMUFCforever

To get the best rates do you not have to apply for at least a loan of £7.5k or more?

I quote from the Barclaycard site
We set individual rates on the basis of a customer's financial status and the amount borrowed. Therefore the rate you are offered may differ from the Typical APR shown.
Loans subject to status. Early settlement fees will apply.

paulpud

What I was quoted online:

Loan Amount £5,000
APR 6.8%
24 monthly payments of £223.05
Total charge for credit £353.20
Total amount repayable £5,353.20
Amount per month with optional payment protection insurance £250.22
Total amount payable with optional payment protection insurance £6,005.28

One hell of a hike from 6.8% to 13.9%

robpw2

yes but all loans and rates are subject to status terms and conditions apply

paulpud

robpw2 wrote: »

yes but all loans and rates are subject to status terms and conditions apply

as has been demonstrated impeccably by Barclaycard in this situation. Taking into account that my current account overdraft rate is only 9.9%APR, and my alternative loan application secured a rate of 6.9%APR, I think this thread serves as a good indicator as to what you can expect with a Barclaycard loan application. Unless, of course, you wish to take out the very competitive PPI :rotfl:

jonesMUFCforever

paulpud wrote: »

What I was quoted online:

Loan Amount £5,000
APR 6.8%
24 monthly payments of £223.05
Total charge for credit £353.20
Total amount repayable £5,353.20
Amount per month with optional payment protection insurance £250.22
Total amount payable with optional payment protection insurance £6,005.28

One hell of a hike from 6.8% to 13.9%

Did you actually apply to get these figures or are they what Barclays quote in a box as examples ie did you input all your personal details as you would on a formal application?
If you did did you have to agree to the bank conducting a credit and/or other searches as part of the terms and conditions of applying?

paulpud

These are figures given when you do a 'quick quote' - you put in what you want, how long you're going to take to pay it back, and declare you are a homeowner. If you are happy with the quote - and at 6.8% I was - you proceed to the full application which is completed and submitted without any further indication of what your actual rate might be. However, I had an idea what was coming when I received my email congratulating me on the full approval of my loan. An ideal opportunity to inform me of the rate hike perhaps? No, but an invitation to call their 'friendly loans customer service team' to 'confirm my rate and repayments'. I was well aware that the rate given is at the banks discretion, as I have been on all other occasions I have obtained credit, but my sound credit history and personal circumstances have always ensured I have been granted the most competitive rates in the past, so I had no reason to suspect anything different this time. What I do suspect is that your rate isn't decided until their friendly team have had a good crack at selling you PPI. Of course, everyone is in business to make money, and I accept that lenders are tightening their belts a little, but in my opinion Barclaycard are using ever-so-slightly underhand methods here, using a low 'typical' APR to encourage you to apply then hiking the actual rate to make it more profitable if they can't get it another way. As I stated previously, the next lender I turned to was offering a typical 6.9% APR, and that is exactly what they gave me