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  • FIRST POST
    • KECMSE
    • By KECMSE 15th May 19, 6:25 AM
    • 3Posts
    • 0Thanks
    KECMSE
    Why cant i get the advertised APR?
    • #1
    • 15th May 19, 6:25 AM
    Why cant i get the advertised APR? 15th May 19 at 6:25 AM
    Im applying for a personal loan for home improvements. I work full time, i earn well above the stated minimum income, i have a close to perfect credit score, no other unsecured debt and no payment blips on my credit file. I am being refused the advertised APR and they wont tell me why. Is this allowed? Can they refuse to provide a reason...
    Comments / advice will be appreciated?
Page 1
    • BoGoF
    • By BoGoF 15th May 19, 6:34 AM
    • 4,548 Posts
    • 4,166 Thanks
    BoGoF
    • #2
    • 15th May 19, 6:34 AM
    • #2
    • 15th May 19, 6:34 AM
    There is no such thing as a perfect score so your 'near perfect' one means nothing. Of course it's allowed....only 51% will get the representative rate, you fall into the other 49%.

    If you have no other unsecured debt then maybe a lack of credit history is going against you. What was the rate advertised and what were you offered?
    • MallyGirl
    • By MallyGirl 15th May 19, 6:41 AM
    • 3,732 Posts
    • 9,168 Thanks
    MallyGirl
    • #3
    • 15th May 19, 6:41 AM
    • #3
    • 15th May 19, 6:41 AM
    It will be down to credit history (not score), affordability, whether they have already filled their quota.
    It is their choice as to what they offer you - and your choice as to whether you accept the offer
    • Nebulous2
    • By Nebulous2 15th May 19, 6:50 AM
    • 2,338 Posts
    • 1,551 Thanks
    Nebulous2
    • #4
    • 15th May 19, 6:50 AM
    • #4
    • 15th May 19, 6:50 AM
    If you go for the rates at the very top of the tables 2.8- 2.9% almost everyone who applies will have a very good history. They only have to give the advertised rate to 51% of people. They wont tell you why you were turned down. If they did people would play the system (including lie) to meet the criteria.

    I'm convinced if you go a few slots down the table to loans at 3.3% or so you improve your chances quite a bit as the competition to be in that 51% is less intense.

    Best rates are usually £7500-15000 for 3-5 years. Lower / higher amounts with or without longer / shorter periods don't do as well.


    Have you tried an eligibility checker? They will give you some idea of your chance of success.
    Last edited by Nebulous2; 15-05-2019 at 6:52 AM. Reason: Add info
    • DCFC79
    • By DCFC79 15th May 19, 7:10 AM
    • 34,434 Posts
    • 21,778 Thanks
    DCFC79
    • #5
    • 15th May 19, 7:10 AM
    • #5
    • 15th May 19, 7:10 AM
    Im applying for a personal loan for home improvements. I work full time, i earn well above the stated minimum income, i have a close to perfect credit score, no other unsecured debt and no payment blips on my credit file. I am being refused the advertised APR and they wont tell me why. Is this allowed? Can they refuse to provide a reason...
    Comments / advice will be appreciated?
    Originally posted by Kate.cooper87

    Yep of course its allowed, it would lead to applicants manipulating the credit history to get the headline rate.

    What rate were you offered ?

    Have you checked your files with the 2 other agencies ?
    • foxy-stoat
    • By foxy-stoat 15th May 19, 7:50 AM
    • 4,480 Posts
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    foxy-stoat
    • #6
    • 15th May 19, 7:50 AM
    • #6
    • 15th May 19, 7:50 AM
    Another week, another thread about why I can't get the headline advertised rate.....You DID read all the terms and the statements concerning the interest rates.

    They can do what they like, you don't have a right to the cheapest rates.

    What rate did they offer you and how much was the loan for?
    • Caz3121
    • By Caz3121 15th May 19, 9:21 AM
    • 12,077 Posts
    • 7,883 Thanks
    Caz3121
    • #7
    • 15th May 19, 9:21 AM
    • #7
    • 15th May 19, 9:21 AM
    Your circumstances do not match with the lenders criteria for the representative rate....that is the answer, how does it help you?
    You apply and there are 3 possible outcomes
    1) sorry we do not want to lend you money
    2) ok we will lend you money at x% (49% of successful applicants
    3) ok we will lend you money at the representative rate (51% of successful applicants)
    You fell into category 2 (better than being in category 1)
    • iolanthe07
    • By iolanthe07 15th May 19, 10:05 AM
    • 5,191 Posts
    • 4,893 Thanks
    iolanthe07
    • #8
    • 15th May 19, 10:05 AM
    • #8
    • 15th May 19, 10:05 AM
    Your circumstances do not match with the lenders criteria for the representative rate....that is the answer, how does it help you?
    You apply and there are 3 possible outcomes
    1) sorry we do not want to lend you money
    2) ok we will lend you money at x% (49% of successful applicants
    3) ok we will lend you money at the representative rate (51% of successful applicants)
    You fell into category 2 (better than being in category 1)
    Originally posted by Caz3121
    Category 4: We have reached our target for headline rate loans this month, so will not be offering any more for the time being, no matter how good your credit history. We can't see your credit score because this is a meaningless made up number by people who don't actually lend money.
    I used to think that good grammar is important, but now I know that good wine is importanter.
    • KECMSE
    • By KECMSE 15th May 19, 10:12 AM
    • 3 Posts
    • 0 Thanks
    KECMSE
    • #9
    • 15th May 19, 10:12 AM
    Thanks
    • #9
    • 15th May 19, 10:12 AM
    Thanks for your replies.
    I did read T&Cs and was convinced I literally ticked all of the boxes to be offered the advertised rate.
    I have revieved Experian & Equifax and no isses from either. Not even a blip... ever!
    I do have a credit history. I have a mortgage (5+yrs) and that along with all bills etc are A1 paid and no unsecured borrowing.
    I have a decent income. I just dont understand what box im not ticking for them?!?!?
    Im literally baffled at what they could possibly want... what do these 51% have ?
    • Gaz83
    • By Gaz83 15th May 19, 10:14 AM
    • 3,770 Posts
    • 7,048 Thanks
    Gaz83
    Thanks for your replies.
    I did read T&Cs and was convinced I literally ticked all of the boxes to be offered the advertised rate.
    Originally posted by Kate.cooper87
    Why?

    They don't specify what these metaphorical 'boxes' are.

    And as has been said, maybe they've just met the 51% requirement this month. No financial incentive for them to give more people the headline rate than they're legally required to.
    "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."
    • KECMSE
    • By KECMSE 15th May 19, 10:14 AM
    • 3 Posts
    • 0 Thanks
    KECMSE
    I applied at 2.9 and they are offering 5.9. I know that is not ridiculous but still its not the advertised rate!
    • Gaz83
    • By Gaz83 15th May 19, 10:16 AM
    • 3,770 Posts
    • 7,048 Thanks
    Gaz83
    Have you ever paid back debt earlier than arranged? By early settlement?
    "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."
    • bazzyb
    • By bazzyb 15th May 19, 10:30 AM
    • 1,275 Posts
    • 3,358 Thanks
    bazzyb
    Can they refuse to provide a reason...
    Originally posted by Kate.cooper87
    Yes.

    Consider applying to one other lender to see if you get a better rate, but donít go applying with lots of places as an excessive number of hard searches wonít help.
    • BoGoF
    • By BoGoF 15th May 19, 10:53 AM
    • 4,548 Posts
    • 4,166 Thanks
    BoGoF
    So you don't have a credit card you use regularly and pay in full every month? If not get one. From what you have said you don't have much in the way of credit....only your mortgage?

    You need a proven record of using credit.....which you don't have
    • foxy-stoat
    • By foxy-stoat 15th May 19, 11:10 AM
    • 4,480 Posts
    • 2,634 Thanks
    foxy-stoat
    I applied at 2.9 and they are offering 5.9. I know that is not ridiculous but still its not the advertised rate!
    Originally posted by Kate.cooper87
    That is because they cannot advertise a rate that is based on your personal circumstances - its a representative headline rate. Dont worry your not the first and wont be the last.
    • Candyapple
    • By Candyapple 15th May 19, 11:19 AM
    • 3,197 Posts
    • 2,683 Thanks
    Candyapple
    Thanks for your replies.
    I did read T&Cs and was convinced I literally ticked all of the boxes to be offered the advertised rate.
    I have revieved Experian & Equifax and no isses from either. Not even a blip... ever!
    I do have a credit history. I have a mortgage (5+yrs) and that along with all bills etc are A1 paid and no unsecured borrowing.
    I have a decent income. I just dont understand what box im not ticking for them?!?!?
    Im literally baffled at what they could possibly want... what do these 51% have ?
    Originally posted by Kate.cooper87
    Your eligibility is not solely based on one factor; any combination of the following factors might be taken into consideration:

    - amount of existing debt
    - amount of existing available credit
    - history of settled accounts
    - average age of accounts held
    - history of incurring defaults
    - number of recent applications for credit
    - age
    - whether single, married, widowed, separated or divorced
    - whether home-owner, tenant or living with parents
    - whether you have any dependants
    - whether they consider you have enough disposable income
    - whether you're on the electoral register and for how long
    - current employment status
    - length of time with current employer
    - salary

    This is by no means an exhaustive list and how each credit-provider assesses you is different; some companies may not consider many of these factors, some may consider even more. Certain factors may not carry any weight and some might dictate the decision-making process completely - you'll never know.

    There is no one rule and the only way you'll know is if you apply and are accepted; ultimately, it's up to each company whether they want to give you a loan or not and on what terms. They have no obligation to lend to anyone nor explain or justify their lending criteria.
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
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