Tesco Bank

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sweols
sweols Posts: 16 Forumite
in Loans
I currently bank with Barclays, pre-approved for 30k, however, my interest rate is 11.9% I have check with Tesco Bank eligibility checker through money saving expert and I've got a 3.0% apr and 70% chance of being successful. I know 3.0% is the bare minimum they would offer and probably unlikely to get that APR, however - even 5.9 would be better than 11.9 with Barclays?

Does anyone have experience with Tesco bank? are they more likely to accept new customers? what are the thoughts? I've just recently checked my credit file on clearscore and there's absolutely nothing going against me.

Opinions? I also have an account with First Direct but I am not using them as a primary bank, so they can't see account activity, income etc

Barclays or another lender?

My annual inc is about 28k ( 18-19 ) but varies, is it unlikely to be successful when you loan for a similar amount over a five year period? When I spoke to 1st direct they seemed hesitant.

Regards,
Michael

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    You're going to struggle to get a headline rate for that amount on your income.

    Pick the two mostly likely lenders and apply simultaneously. First Direct are rarely the most competitive.
  • sweols
    sweols Posts: 16 Forumite
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    Simultaneously? how close apart do they need to be? seconds? minutes? hours?

    What lenders do you suggest?

    also what rates are realistic?
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    As close as you can get them.

    Lenders who appear high up on your eligibility checker.

    The rates will depend on your circumstances. Anything up to 25%, after that you're probably looking at a decline.
  • sweols
    sweols Posts: 16 Forumite
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    Because I've been pre-approved for 30k with Barclays, with a rate of 11.9% and 100% chance of being successful this surely must say something? Barclays are notoriously difficult to deal with and I've only just recently managed to get the APR down from 18.9, 5 years ago started out with a painful 23.9%.

    Which eligibility checkers do you suggest?
  • sweols
    sweols Posts: 16 Forumite
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    Joined the Tesco Club thingie, hopefully, this will improve chances as well? should I perhaps do some shops with Tesco in the near future, whilst using the card?
  • DCFC79
    DCFC79 Posts: 40,598 Forumite
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    sweols wrote: »
    Joined the Tesco Club thingie, hopefully, this will improve chances as well? should I perhaps do some shops with Tesco in the near future, whilst using the card?


    Whats Tesco Club thingie ?


    Do you mean Tesco credit card you mean ?
    If the case you don't have to shop in Tesco.
  • sweols
    sweols Posts: 16 Forumite
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    My apologies, I meant their club card - during the soft search it mentioned something about improving chances if you add the club card during the application.

    I assume you actually have to use it in store to gain any kind of benefits? Any information on this?
    Regards
  • bertiewhite
    bertiewhite Posts: 1,904 Forumite
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    I got a Tesco Clubcard loan with preferential rate for existing Clubcard customers (3.5% I think - I have a Clubcard credit card). The application & approval process were all done online - minimal fuss.
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    Depends how much you need the 30k.

    Don't know if Barclays will do a hard search. 11.9% when you want a loan close to income seems pretty decent to me. I'd snap it up (make sure you have the funds in your account) then try your top 2 or 3 on the eligibility check.

    IF you get one of the others, brilliant, just cancel the Barclays within the cooling off, pay the daily interest and know you're much better off (X% per year) for the cost of a few quid in interest.

    If you don't, you've not damaged your changes of getting the Barclays loan. Although pre-approved, until it's in your account I wouldn't be too sure (for example, depending on the lender, it could refer... and then if they see you've been applying all over the place they won't be happy)

    If you bank with Lloyds/Halifax - their credit scoring update is around about tomorrow... could be worth checking them (through online banking I think it tells you if you're likely to get it). I'm waiting to see if they fancy giving me a credit card this month... I've gone from 50% to 80% to nothing in the last 3 months!

    Also - aren't the best rates generally £7,500 to 25k? You might want to try £25k to see what's quoted at Barclays, it might not be 11.9%?
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