Cheap Loans: How to get your lowest possible rate Discussion Area

jago25_98

Zopa is cheaper with 6.6% on about £6k

DJH120

I phoned Sainsbury's bank because, being an existing customer it said on their site to phone rather than apply online.

The initial rate quoted was 8.9% - a way above the online 'example' rate of 7.2%.

So they said they'd deal with my call 'as if it was' an online application. The operator needed simply to enter a code to do this.

After giving them all relevant details they came back with 9.2% as the rate.

I asked them to explain the difference and of course it was all down to credit ratings etc etc. So I said I wasn't too happy and the operator offered to refer it to an underwriter. Having done that the rate was reduced to 8.2%.

Ok I didn't get the 7.2% quoted online but it just shows you can argue a point to get rates reduced.

sidley

I am in recipt of dissability living allowence i recieve in total roughly £998 a month i want to borrow £1000 over five years for home improvments ive applied online to websites stating they are loan companies that fit this criteria for the third time i have unknowingly signed up to a flaming broker the first enquiry,a broker took roughly £70 from my account and i recieved txt msgs from supposed loan companys i eventually contacted one and lo and behold they were also a broker! and took another £70 for thier services! so again i began recieving txt a little more aware but desperate i contacted one of the companies asked weather the same thing was going to happen ect explained what had happened previously was reasured they were different im currently awaiting paperwork from them and have found out surprise surprise there a BROKER! i just want to borrow £1000 for five years i can not provide a gaurentor all i CAN provide is proof of my income! can anyone advise? Regards sidley x:mad:

infinite2006

Hi guys,

I'm thinking of applying to Zopa for a new 10k loan. Its for long overdue home improvments for this winter. I was offered a rate of 7.1% APR from Zopa after the soft credit search last month, 25th June 2013. However, since then I have cleared £4600 credit card with MBNA and closed the account and also reduced £3000 Santander credit card outstanding to £1000. I also have a Halifax outstanding £4000 but its 26 months at 0%. I hope to clear and close Santander next month.

Is there any point in applying to Zopa again for an improved rate, I was thinking the 2nd or 3rd of the month seems to be the most favourable window for new applications. Or would I be best just going to Sainsburys, 5.1 APR? Nationwide is also on the radar, Im not an existing current account holder but have mortgage with them. Any advice appreciated.

redhotpepper

infinite2006 wrote: »

Hi guys,

I'm thinking of applying to Zopa for a new 10k loan. Its for long overdue home improvments for this winter. I was offered a rate of 7.1% APR from Zopa after the soft credit search last month, 25th June 2013. However, since then I have cleared £4600 credit card with MBNA and closed the account and also reduced £3000 Santander credit card outstanding to £1000. I also have a Halifax outstanding £4000 but its 26 months at 0%. I hope to clear and close Santander next month.

Is there any point in applying to Zopa again for an improved rate, I was thinking the 2nd or 3rd of the month seems to be the most favourable window for new applications. Or would I be best just going to Sainsburys, 5.1 APR? Nationwide is also on the radar, Im not an existing current account holder but have mortgage with them. Any advice appreciated.

Hi,
I am not sure about you applying for Sainsbury's. I applied 2 weeks ago for £15000 over 3 years. Advertised apr was 4.9%. I was offerred at 6.1%. I then applied tesco for the same amount and got advertised 5.1% APR. I earn £75000 a year, no other outstanding debts apart from a mortgage and have 3 credit cards which I have always paid in full over last 8 years and have never missed a payment. I then applied for tesco credit card 0% for new purchases over 18 months which has been approved with a credit limit of £11000. So I am not sure of taking the loan in first place. So in nutshell, tesco maybe a better bet

infinite2006

redhotpepper wrote: »

Hi,
I am not sure about you applying for Sainsbury's. I applied 2 weeks ago for £15000 over 3 years. Advertised apr was 4.9%. I was offerred at 6.1%. I then applied tesco for the same amount and got advertised 5.1% APR. I earn £75000 a year, no other outstanding debts apart from a mortgage and have 3 credit cards which I have always paid in full over last 8 years and have never missed a payment. I then applied for tesco credit card 0% for new purchases over 18 months which has been approved with a credit limit of £11000. So I am not sure of taking the loan in first place. So in nutshell, tesco maybe a better bet

Thanks for info redhot pepper. You must need to be a millionaire to get quoted best rates. I might chance tesco then, like the flex Zopa offer though. I will likely overpay to get cleared asap

kaoswbz

Recommended to soft search for a loan so it would not appear on my credit rating so applied to Zopa. Informed had a strong application and immediately offered finance at 5.5% APR with only a 30 minute deadline which I accepted. Received an email this afternoon to say I had been declined. So this will now go on my credit score. No explanation. I am earning a good salary, have no other debts and live with my parents so no high mortgage or rent to pay.

My own bank has offered me the same amount of loan, but at a slightly higher APR (9.1%) with no problem this evening.

Can anyone tell me what criteria I am not meeting with Zopa?? Am miffed that after having been told I had a strong case, I was rejected, yet my own bank was willing to accept the application.

gb12345

kaoswbz wrote: »

Can anyone tell me what criteria I am not meeting with Zopa??

Since no one here is going to admit to working for Zopa's underwriting department you're not going to get a true answer to that here.

You could try asking Zopa, but I doubt they would want to divulge their underwriting criteria to you either.

My guess from the limited details that you've given is that the problem is that you are probably fairly young (early 20s?) and have no credit history, so they had nothing to assess your ability to handle credit on and have therefore judged to as too much of a risk. Your branch have maybe taken a more pragmatic view and assessed you on the way you have handled the accounts you have with them.

Boromir

What's noted on the article is incorrect - if you do a tentative application with Nationwide to see what rate you get, they WILL do a credit reference search - my Noddle record has just such an entry for the check I made last week already - even though I went with Sainsbury's in the end (the next day)..

.. and despite a perfect score, long employment, and an affordable amount, I was NOT offered the headline "4.9%" (Have any of you actually got this rate with Sains?)

..or did I queer my pitch by Nationwide searching for me the day before do you think?

Answers on a hundred pound note please!

Waltons11

I need a loan for a car, so completed the eligibilty checker and got 90% on several companies. The first one I applied to came back very quickly with a "NO". I guess that will show on my credit file for another 6 months thus preventing me from any further applications. Does anyone have any advice on the best move now as my car really is on its last legs.