Second Application for Better Rate
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Hi folks,
I've always been relatively financially cautious. But now that we own our home, and things are ticking over nicely, I want to buy a decent car. I've not had a loan before but feel happy to take one for this purpose knowing I don't have the need of a mortgage down the line hanging over me anymore.
So I looked around and sussed out where I might get the best rate. I eventually took the plunge and applied to Sainsburys. I was bitterly disappointed with the rate offered (8.3%). I knew I might not get the 3% or whatever, but this 8.3% is higher than I had imagined. Potential reasons - only being in our house a year (we bought our rental from the landlord), or the fact of recently having bought a house, perhaps. Credit should otherwise be clean as a whistle.
Anyway... I'm feeling somewhat "stuck" with this loan offer now. And I have two questions:
- If I apply for a different loan offering from M&S, will this likely be worse than 8.3% APR given my outcome with Sainsburys, or is it worth a shot?
- If I do apply for an alternative loan, could my initial offer from Sainsburys potentially be revoked? I don't want to be left with no loan at all!
I would likely seek to overpay quite regularly and pay the loan off early, so I am tempted to take the 8.3% hit, but I don't want to be foolish and I don't feel I have enough knowledge before deciding what to do.
Many thanks for any advice you might be able to give.
I've always been relatively financially cautious. But now that we own our home, and things are ticking over nicely, I want to buy a decent car. I've not had a loan before but feel happy to take one for this purpose knowing I don't have the need of a mortgage down the line hanging over me anymore.
So I looked around and sussed out where I might get the best rate. I eventually took the plunge and applied to Sainsburys. I was bitterly disappointed with the rate offered (8.3%). I knew I might not get the 3% or whatever, but this 8.3% is higher than I had imagined. Potential reasons - only being in our house a year (we bought our rental from the landlord), or the fact of recently having bought a house, perhaps. Credit should otherwise be clean as a whistle.
Anyway... I'm feeling somewhat "stuck" with this loan offer now. And I have two questions:
- If I apply for a different loan offering from M&S, will this likely be worse than 8.3% APR given my outcome with Sainsburys, or is it worth a shot?
- If I do apply for an alternative loan, could my initial offer from Sainsburys potentially be revoked? I don't want to be left with no loan at all!
I would likely seek to overpay quite regularly and pay the loan off early, so I am tempted to take the 8.3% hit, but I don't want to be foolish and I don't feel I have enough knowledge before deciding what to do.
Many thanks for any advice you might be able to give.
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Comments
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Make one more application. It's impossible to say what they will give you.
If higher, you can take the Sainsburys one.0 -
Hi folks,
I've always been relatively financially cautious. But now that we own our home, and things are ticking over nicely, I want to buy a decent car. I've not had a loan before but feel happy to take one for this purpose knowing I don't have the need of a mortgage down the line hanging over me anymore.
So I looked around and sussed out where I might get the best rate. I eventually took the plunge and applied to Sainsburys. I was bitterly disappointed with the rate offered (8.3%). I knew I might not get the 3% or whatever, but this 8.3% is higher than I had imagined. Potential reasons - only being in our house a year (we bought our rental from the landlord), or the fact of recently having bought a house, perhaps. Credit should otherwise be clean as a whistle.
Anyway... I'm feeling somewhat "stuck" with this loan offer now. And I have two questions:
- If I apply for a different loan offering from M&S, will this likely be worse than 8.3% APR given my outcome with Sainsburys, or is it worth a shot?
- If I do apply for an alternative loan, could my initial offer from Sainsburys potentially be revoked? I don't want to be left with no loan at all!
I would likely seek to overpay quite regularly and pay the loan off early, so I am tempted to take the 8.3% hit, but I don't want to be foolish and I don't feel I have enough knowledge before deciding what to do.
Many thanks for any advice you might be able to give.
Hi Touranton
Looking at previous posts on here Sainsburys can be picky in who they offer loans too and what rates they offer.
Id check your credit files at the 3 agencies, clearscore, noddle and mse credit club.0 -
Thanks, both. I explored my credit ratings. 999 with Experian and 501 with ClearScore.
I have now processed an application with M&S in the hopes that I will get a better rate. Even a slight improvement on 8.3% would be welcomed.
I will report back in case it might be of use to somebody else. It is so disheartening to waste hard-earned money on interest!!!0 -
Don't explore your credit ratings. They're just a made up number that no one uses. 999 may mean you're either 18 or bankrupt.
Explore your credit history. Do your files show any negatives, such as missed pay!nets, defaults etc?0 -
Thanks, both. I explored my credit ratings. 999 with Experian and 501 with ClearScore.
I have now processed an application with M&S in the hopes that I will get a better rate. Even a slight improvement on 8.3% would be welcomed.
I will report back in case it might be of use to somebody else. It is so disheartening to waste hard-earned money on interest!!!
Your scores are of no use to anyone. Any negatives on your files ?0 -
Nothing at all! No negatives; nothing missed/ defaulted (which I knew); all positives! Fingers crossed for a more favourable rate elsewhere.0
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Nothing at all! No negatives; nothing missed/ defaulted (which I knew); all positives! Fingers crossed for a more favourable rate elsewhere.
Yes its annoying wasting money on interest when you could get a cheaper rate.
Yes give M&S a try, never know they might offer a lower rate.0 -
OP how much do you want to borrow?
Best rates are usually reserved for loans of £7500 or more.
Have you seen what your main bank has to offer - the one where your salary goes into?0 -
I want to borrow £19/20k in total.
I see, every day, in my online banking that my own bank, Barclays, has pre-approved me for £35k, but having looked at the details on this, they'll only offer me a rate of 10.9% on £20k, which is even worse!!!
I was very naive about loan rates. I'm so curious to see what I get offered next! It seems such a lottery as to what's offered.0 -
That's a fair whack to borrow so relatively soon after buying a house. What kind of salary are you on?"Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."0
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