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  • FIRST POST
    • city_knight
    • By city_knight 9th Jan 18, 12:00 AM
    • 24Posts
    • 0Thanks
    city_knight
    AA Loans - which reference agency?
    • #1
    • 9th Jan 18, 12:00 AM
    AA Loans - which reference agency? 9th Jan 18 at 12:00 AM
    Hi
    I had an HSBC loan at 4% that I paid off with some family money last week. The HSBC loan is now closed down.


    The point of doing that was so that it is easier to be approved for an AA Loan, so that when they check my file they see I don't have any other credit products.


    I signed up for the MSE Credit Club and can see that the last time Experian updated the HSBC loan balance was 10th December. I can't again check the Experian report through MSE until the end of the January.


    How long do I need to wait before applying for the AA Loan, or can I know which credit agency they use for the application process so I can check myself that the agency they use has recognised I have paid off the HSBC loan?
Page 1
    • marty2be2000
    • By marty2be2000 9th Jan 18, 7:39 AM
    • 202 Posts
    • 111 Thanks
    marty2be2000
    • #2
    • 9th Jan 18, 7:39 AM
    • #2
    • 9th Jan 18, 7:39 AM
    It could take several months to be removed from the credit reference agencies, it all depends on reporting and how the internal systems work.

    You have just paid the loan off, so have most likely missed the last update as it will have been sent already.

    Have you had notification of account closure from HSBC by post yet? until that happens the account may have a zero balance but remain open.

    It's quiet possible that the AA may search one or more, or maybe all the credit reference agencies.
    • city_knight
    • By city_knight 9th Jan 18, 10:04 AM
    • 24 Posts
    • 0 Thanks
    city_knight
    • #3
    • 9th Jan 18, 10:04 AM
    • #3
    • 9th Jan 18, 10:04 AM
    ah, interesting.
    The loan account was confirmed closed on 3rd Jan and no longer appears on my account list. The letter is yet to arrive.
    Perhaps best to wait until the 10th/11th for Experian to update (and confirm it with a £2 report) then apply and take my chances.. sound like a reasonable plan?
    • poggs
    • By poggs 9th Jan 18, 10:10 AM
    • 120 Posts
    • 53 Thanks
    poggs
    • #4
    • 9th Jan 18, 10:10 AM
    • #4
    • 9th Jan 18, 10:10 AM
    Way too soon.

    It'll be mid march before that is marked as settled and closed on the credit agency sites.

    Any applications before then will be assessed as if you still have the loan in place.

    patience.....

    CRA are anything but fast. All data on all of my reports are at least 2 months out of date, all the time. Its just the way the reporting cycle seems to work.
    • BoGoF
    • By BoGoF 9th Jan 18, 10:24 AM
    • 3,203 Posts
    • 2,519 Thanks
    BoGoF
    • #5
    • 9th Jan 18, 10:24 AM
    • #5
    • 9th Jan 18, 10:24 AM
    I'm assuming you did this to apply for the 3.1% AA rate. Hopefully you are aware that there is no guarantee you will get this rate (only 51% have to) and you may in fact be offered a rate greater than that just settled.
    • city_knight
    • By city_knight 9th Jan 18, 10:45 AM
    • 24 Posts
    • 0 Thanks
    city_knight
    • #6
    • 9th Jan 18, 10:45 AM
    • #6
    • 9th Jan 18, 10:45 AM
    Sure, I know the risks with the APR assessment.
    Perhaps I can send the HSBC loan closing statement to AA if they don't offer a low rate for them to re-assess.
    • city_knight
    • By city_knight 9th Jan 18, 10:51 AM
    • 24 Posts
    • 0 Thanks
    city_knight
    • #7
    • 9th Jan 18, 10:51 AM
    • #7
    • 9th Jan 18, 10:51 AM
    The tool in credit club shows 95% for HSBC and 90% for AA as the records currently stand
    • BoGoF
    • By BoGoF 9th Jan 18, 10:54 AM
    • 3,203 Posts
    • 2,519 Thanks
    BoGoF
    • #8
    • 9th Jan 18, 10:54 AM
    • #8
    • 9th Jan 18, 10:54 AM
    That may for aporoval but not the rate.

    TBH its not a risk I would have taken.
    • city_knight
    • By city_knight 11th Jan 18, 9:44 PM
    • 24 Posts
    • 0 Thanks
    city_knight
    • #9
    • 11th Jan 18, 9:44 PM
    • #9
    • 11th Jan 18, 9:44 PM
    All worked perfectly, got the 3.1% £25k over 48 months.
    • Richey_
    • By Richey_ 11th Jan 18, 10:13 PM
    • 323 Posts
    • 376 Thanks
    Richey_
    This soon it would not have updated so it made no difference that you paid off the HSBC loan.
    You would have got it anyway.

    I’m assuming that the money given to you by family to pay off the HSBC loan was a gift?
    If it was a loan I am sure you would have declared it in the application form to AA?
    • darrenwh
    • By darrenwh 12th Jan 18, 3:08 PM
    • 1 Posts
    • 0 Thanks
    darrenwh
    I just applied for a AA loan, have a 999 rating on Experian, no outstanding credit, full time job 30K+, still got offered a measly 9% on an advertised value of 3.1% so no idea where their getting their figures from.
    • zx81
    • By zx81 12th Jan 18, 3:09 PM
    • 17,240 Posts
    • 18,326 Thanks
    zx81
    Well, it's definitely not from your Experian rating.

    They get their data from the CRAs and your application.
    • martynjwood
    • By martynjwood 12th Jan 18, 4:28 PM
    • 2 Posts
    • 0 Thanks
    martynjwood
    Not sure. I applied today under the false hope of 3.0% to get offered 9.9% after full application.

    Disappointed this occurs after a Hard credit search as all other lender websites changed APR after the eligibility checker. For the 49% of those that don't get the representative APR this is unfair and could be bad news for your credit score.

    V poor that this is not made blatantly obvious that changes to APR may occur after hard check and there credit file affected.
    • DanielRodrigues
    • By DanielRodrigues 30th May 18, 1:17 PM
    • 13 Posts
    • 0 Thanks
    DanielRodrigues
    AA Approval
    Hi,

    Did you get a text confirming that the money would be in your account within 2 days?

    Thank you
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