Cancel loan application

Rjw72
Rjw72 Posts: 4 Newbie
in Loans
I have applied for a loan with post office. They have said they are going to post agreement in 5 days but they may need some extra paperwork. But while looking at my bank they have a better rate with a highly likely on soft check. Would cancelling my post office application from 3 hours ago cause me problems applying with my bank?

Comments

  • Willing2Learn
    Willing2Learn Posts: 6,294 Forumite
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    I would not cancel the Post Office loan before you have made an official application with your own bank, as you won't know your banks APR until after you have applied. Then you can choose which application to withdraw from based on the definite APR.

    It would not cause any problem with your own bank if you were exercise your right of withdrawal from the Post Office loan
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • Rjw72
    Rjw72 Posts: 4 Newbie
    Will it not seem like I am borrowing twice the amount
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    You haven't yet borrowed any amount.
  • boo_star
    boo_star Posts: 3,202 Forumite
    First Post First Anniversary
    Rjw72 wrote: »
    Will it not seem like I am borrowing twice the amount

    As zx81 says you haven't borrowed anything yet, all that you've done is apply and all your bank will see if a hard search for a loan.

    That may or may not be a problem but there's not much you can do about it now, cancelling the loan will not remove the hard search.
  • Rjw72
    Rjw72 Posts: 4 Newbie
    Would a hard search be a major issue? My rating on Experian is 999 would it make a change to it. Is using your bank an advantage
  • Willing2Learn
    Willing2Learn Posts: 6,294 Forumite
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    Neither your bank nor the Post Office see or use your 'credit score' from Experian. So it doesn't matter that your Experian 'credit score' will drop as a result of the hard searches.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • Rjw72
    Rjw72 Posts: 4 Newbie
    Just to update this. Applied with bank got loan at 2.86% so will cancel post office tomorrow.
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