moneyback bank loan? (merged)

The_Boss

Yes, it will affect your rating, as to get the other loan, they will do a credit search too. The Moneybank loan and HSBC cards will show up, and the fact they they have been done fairly close together could have further impact, not to mention the third you want to do. Therefore, the 'typical' rate for that loan may well end up higher too. I'd stick with what you've got.

blacksta

I recently applied for a nationwide loan at a guarantted 6.7% . Which to my suprised was approved even though i had many searches prior to natiowide application search

gomez_2

Hmmm, ok, I thought as much!

Out of interest, I've just been looking on the Cahoot website, and their help sections states that it's possible to replace an existing Cahoot flexible loan with a Cahoot fixed loan?

I assume that this would also involve a credit check? ie. I'd essentially be applying for a new fixed rate loan and "balance transfering" the balance from my flexible account?

Or, would Cahoot not need to perform the check given that they'd just be switch the product I have?

Thanks again for your help?

maforduk

Best thing to do is ring them up, as to speak to their underwriting review department, explein the situation to them and tell them you applied for the lower rate and without that you won't be able to accept the loan of 8.9%. Ask them to reconsider it.

You have nothing to lose, I done this before with various banks and was successful

tightbarsteward

Applied for a joint loan with my partner only £2600 which we plan to pay off early. Applied thru moneysupermarket. Advisor called Annie phoned & for the 18 minutes my partner was on the phone to her, 10 of those minutes were spent arguing with the advisor about insurance that we did not want. She then pushed my partner for a debit card number, as "the money will be in our account quicker". Against her better judgement she gave the advisor the card number. What the advisor neglected to tell her was the fact we would now be charged £30 CHAPS transfer fee. Also despite the fact they had sent me a letter saying it would be paid by BACS.

When I got another letter saying I was going to be charged I was fuming, rang up to complain about the advisor & then sent the loan money back. In hindsight i should have kept £30 back for the CHAPS but was a bit quick for my own good.

Have now spoken to 3 different people since Thursday, 2 were supposed to ring me back & haven't & I am now waiting on another call but I am not holding my breath. They say they will listen to the taped phone call from when the pushy advisor spoke to my partner.

So if you do get a loan from these or anyone else check about hidden CHAPS fees & it appears the advisors are on commission to sell PPI cover.

Rafter

Another victim.

Unfortunately there is no way of making money on a loan with such a low apr without selling ridiculously overpriced PPI insurance and overcharging for Chaps transfers.

If you need a loan for this amount, suggest you try nationwide or an Egg flexible loan - that way no penalty interest if you do decide to pay off early.

R.

civicwalker

I subsequently managed to get 5.6% from Cahoot with no problem so my credit rating is fine.

However after originally requesting 5.5% 5 year £5000 fixed loan and being requested to ring MoneyBack [Alliance & Leicester] . . . . . . all I get offered was 6.9% and the insuarance hard sell. Sorry but my personal recomendation is go elsewhere and don't waste a credit search.

Bernard_Coleslaw

Rafter wrote:

Another victim.

Unfortunately there is no way of making money on a loan with such a low apr without selling ridiculously overpriced PPI insurance and overcharging for Chaps transfers.

But there is, if you don't want to be greedy. Banks raise money from savers and money markets at much lower rates than this. Lending it out, even at 5 and 6%, makes them some profit.

Looking after their customers, so they tell others and (heavens above) come back and buy other things from them over time, would make them even more profit in the long run.

But this appears to be beyond so many major players these days. A customer is for life, not just for Christmas.

BC

dave318

My wife and I decided to go for a loan and upgrade the computer and pay off a few things. So we saw Moneyback bank loan rate on here at 5.5%. great rate, and less than our current One Account mortgage rate so we decided to go for it. £5000 over 12 months worked out to be about £147 in interest over the year.
However, on phoning to see if the loan was granted, my wife had the Spanish inquisition on the phone before they virtually said that if we did not take out the repayment insurance, then the loan would not be granted. This was going to be almost another £50 per month. My wife was quite adamant that we did not need it and eventually hung up the phone on them.
They phoned back two minutes later to try to sell it again, but eventually relented and gave us the loan without insurance.
It may be the best rate going, but just a warning to watch out for very underhand practices.
David

asandwhen

Best thing to do with them to stop them saying you either take it or no loan - is to take out the ppi and the cancel it within the 7 day period.