Not as advertised APR - try again?
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Hello all.
I have applied for a loan using a search comparison site and took Martin’s advice. Upon acceptance, the advertised rate of 4%(ish) turned out to be 12%, which I was disappointed at.
Even though my application was accepted, I did not click on the final step and am receiving emails from the company stating ‘Congratulations, your loan application has been approved!
If you haven't e-signed your agreement please log in to your account using your email address and the password you created at the start of your application.’
My question is does this count as a search and, if so, am I right in thinking that making another application to another provider in the hope of getting a better APR would work negatively on my credit record?
Further to this, even if it doesn’t count as a search, is there even any point in making another application to try to get a better APR?
Thanks all.
I have applied for a loan using a search comparison site and took Martin’s advice. Upon acceptance, the advertised rate of 4%(ish) turned out to be 12%, which I was disappointed at.
Even though my application was accepted, I did not click on the final step and am receiving emails from the company stating ‘Congratulations, your loan application has been approved!
If you haven't e-signed your agreement please log in to your account using your email address and the password you created at the start of your application.’
My question is does this count as a search and, if so, am I right in thinking that making another application to another provider in the hope of getting a better APR would work negatively on my credit record?
Further to this, even if it doesn’t count as a search, is there even any point in making another application to try to get a better APR?
Thanks all.
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Comments
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Yes, it's a search.
It's certainly worth one more application to see if you can better the rate. But apply to the right lender. Use an eligibility checker.0 -
Yes try a second application but choose wisely. As zx says use the eligibility checker.0
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Deleted_User wrote: »Yes, it's a search.
It's certainly worth one more application to see if you can better the rate. But apply to the right lender. Use an eligibility checker.
But I did use the eligibility calculator and I was 95% so....how can I do better, if this makes sense?0 -
You can try another lender.
All have different criteria.0 -
But I did use the eligibility calculator and I was 95% so....how can I do better, if this makes sense?
you had 95% chance of being accepted. Not 95% chance of being offered that rate.
Only 51% of people accepted will get that rate - you were one of the 49%. It is probably worth trying one more application but with an offered rate of 12% there is probably something in your credit history that they didn't want in a customer. Have you looked at your history with all 3 CRAs to check there are no issues or errors?I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
& Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
All views are my own and not the official line of MoneySavingExpert.0 -
The rate you got offered was based on your credit file and information you put in, you are likely to get a similar rate with another lender but its worth a try.0
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Lenders only have to offer the advertised rate to 51% of applicants, so unfortunately you have lucked out. Keep in mind that multiple searches in a short time frame can look bad to lenders so I'd avoid making too many more applications - use an eligibility checker to see if you're likely to be accepted with a new lender before you make another application. Unfortunately most checkers won't let you know the rate you'll be offered beforehand though, so keep that in mind0
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Thank you, all. Result: I tried with another lender and got 4.5%!0
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As I learned a long time ago, a credit search is a credit search. It doesn't matter if the product applied for is approved, declined, referred or cancelled. It cannot be undone.
The infrastructure is outdated and biased and with some luck, lenders will not be able to see searches in the future. MODA should be made universal across all lenders and this would eliminate the need for search history analysis, since newly opened accounts will show and can be used for laser-precision affordability.
The decision should be entirely based on credit analysis of information about existing accounts, not how many applications someone has made and when, since most of the time, it is window shopping rather than abuse of the system. Unfortunately we are stuck with the current framework indefinitely.Advice provided from this account does not consist of any professional knowledge. For professional debt advice, please contact either National Debtline or StepChange. Advice may consist of personal experience, opinion and/or informational sources.0 -
Hi, who did you try second time?
I tried hitatchi and like you had exact same experience
thanks0
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