Asda Loans 6.9% Ha Ha !!!

Kavanne

_Andy_ wrote: »

the PPI isn't relevant. The quote you had was just that - a quote.

Once you applied it then credit scored you and based on that gave a different APR. This would have happened with or without the PPI.

Thanks for explaining it better than I did!

General_Lee_2

PPI Cannot and does not have an impact on the rate charged.

Banks and lenders have to advertise the typical APR of their products (the APR that at least 66% of customers recieve). They can advertise from rates, eg rates from 5.9% - but with this they must also give the typical which must be in a more prominant font (150% the size of the from rate), hence why you will often see ads like "rates from 5.9%, TYPICAL APR 6.4&APR"......

It can be confusing - but banks often load the aprs of some customers to allow them to accept them (the increased margin ofsetting the bad debt risk) - where without the load these customers would probably be declined!

The unfortunate thing is that you will never know the rate you will get until you have applied (and had a credit search) and if you dont get the rate you want this search can hamper your chance of getting the loan with another provider as the seach impacts your credit score.