Asda Loans 6.9% Ha Ha !!!

mrsbneeg

My husband has just applied for an Asda loan to finance part of a car purchase (£8000) with a typical APR 6.9%. We have a mortgage 3 credit cards (2 with a nil balance 1 is paid off in full every month). No other credit.
Application was accepted :j but the interest rate offered 15.9% :eek:. Small print underneath the interest rate offered states they only have to offer the low rate to 66% of applicants.
Obviously we will not be accepting this 'offer' but won't this application now go on his credit rating :mad: .

15.9% isnt even close to 6.9%
Not best pleased about this, has anyone else had a similar experience?

lewt

no but i just went go a barclay card one and will be checking to see if a simlar offer has gone through

Graeme7777

Unfortunately you're correct in that lenders are allowed to quote the rates given to 2/3 of their borrowers.

Hope you find a good deal!

Kavanne

It's called risk pricing. They see you as too high a risk to give a 6.9% rate to. Why that is (unless there is something glaringly obvious in your credit file/credit history) we'll never know.

If Asda's offer went up on risk based pricing, so might other loans, so watch out.

ratsass

We recently applied for a loan from Alliance & Leicester as they were listed on this site as the cheapest for loans. It was a painful process but we were approved for the loan.

But when we showed the figures to the Ford dealer from whom we were buying the car, they were able to beat the rate we had from A&L. Salesman said that Ford Finance is willing to do some v good deals at the moment. So, if you do get approval for a loan, show the figures to the the car dealer (if that's where you buying from) and see if they can beat it.

waddy80

It's normal practice. Most people think they can get a great rate anywhere, but 9/10 they can't.

jonesMUFCforever

I bet the salesman shows you the 'flat' rate and not the 'APR'.

MarkyMarkD

Well said, jonesMUFCforever. Please say, ratsass, that the Ford quote beat the A&L quote on monthly payments (and total amount repaid, over the same term) and not simply the interest rate which, as jones says, car dealers tend to mislead on.

mrsbneeg

Not sure why he would be 'high risk' . Absolutely no reason for this at all . Only thing I can think of after further investigation is that we are not on the electoral register....
We have now borrowed from hubbys parents and will be paying back within 1 year with a tiny amount of interest that they will lose as it isnt in their account so all worked out well in the end.:T
Must get ourselves on the electoral register though.

Agaton_Sax

Recommend you get on the Electoral Register ASAP.

ratsass

MarkyMarkD wrote: »

Well said, jonesMUFCforever. Please say, ratsass, that the Ford quote beat the A&L quote on monthly payments (and total amount repaid, over the same term) and not simply the interest rate which, as jones says, car dealers tend to mislead on.

They beat the quote on monthly payments (only by 17p a month!) and total repaid over the same term. But I didn't like the aggressive selling of the A&L salesman so I was pleased to take my business elsewhere.

They had to sacrifice the arrangement fee and Ford finance subsidised the rate to beat the A&L quote. Salesmen said they were very keen on getting business at the moment.