Graham88
Member
Registered: 16th Apr 07
Location: South East Kent Drives: E46 M3
User status: Offline
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Went into the bank (Abbey) to see about a loan today, and they can only give me a quote based on there best interest rate (8.9%APR). I asked for a quote on my own credit as I doubt I'll be liable for that as I've only got a contract phone and had one loan in the past so hardly going to be brilliant. She then asked if I wanted insurance I said how much is it, and she couldn't say as they don't offer it in branch, you have to use the phones?
So anyway I asked for the in branch quote without insurance and she said if she does that my credit will go down and APR will go up? And then when they quote me with insurance it'll do the same again, and if and when I take it out they'll do it again and APR will rise each of those times? Wtf is that about? So basically if I get a quote I'm more or less pushed into taking the loan at the time or I risk my credit getting worse?
Seriously is there a way around this? For all I know they're going to do a credit search and I'll be getting charged 25% but they'll expect me to take it there and then or my credit will get worse 
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dannymccann
Member
Registered: 9th Aug 06
Location: Doddington, Lincolnshire
User status: Offline
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Every time a credit score is done on you it has a mark on your file, theres no way around it.
Do you desperately need the loan?
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Graham88
Member
Registered: 16th Apr 07
Location: South East Kent Drives: E46 M3
User status: Offline
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Not desperate no, it's for a new car, and not urgently needed this minute, got to sell my old one first I just thought I would make some enquiries first.
Just seems a silly system to me.
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dannymccann
Member
Registered: 9th Aug 06
Location: Doddington, Lincolnshire
User status: Offline
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Only going to get worse with the new regs the banks have coming on them all the time as well, will make it harder and harder for young people / people with poor credit scores. Its all about trying to make us think twice about using credit to buy things, which is a shame for the financially sound people who could quite easily afford a normal loan yet get stung with stupid APRs because of age etc 
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Graham88
Member
Registered: 16th Apr 07
Location: South East Kent Drives: E46 M3
User status: Offline
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I misunderstood your question about desperately needing the loan, it's for £8000, so yes I need the loan as I am not taking finance and it might be a private sale anyway so finance won't be an option. I have no other way of getting that money otherwise and a loan is a good way of getting some form of credit for myself. I've had one loan for £3500 over a year and a contract phone for a few years, so I won't have bad credit, but it won't be great either as I don't have much to show (mortgage, rent etc)
I will be taking one I just thought it was a stupid system and wanted to make sure everything was as sounds.
On £8000 over 2 years the monthly payments were about £350 and a total of £8700 at the end. No sweat for me to pay but it's whether I'll get an interest rate anywhere near that.
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dannymccann
Member
Registered: 9th Aug 06
Location: Doddington, Lincolnshire
User status: Offline
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Fair enough if its really important to you thats what its there for at the end of the day. What with the climate still being.....unstable somewhat....I wouldnt be surprised if you got APRs of double or triple the advertised rate.
I know when I looked (21, never been in debt, got credit cards, phone contract etc) for a loan of £5k I was getting quotes of 33.9%  Jog on
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John
Member
Registered: 30th Jun 03
User status: Offline
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It puts a mark on your file but this won't affect your rating at all.
If you are getting loads of checks and refusals this may affect it but the woman in the bank was talking rubbish.
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
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In my experience it doesn't affect things much. I moved loads of money round when I first moved in this flat, checks and scores each time, never gave me a problem ever.
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deano87
Member
Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline
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Normally puts a worse mark on if you get declined for the loan, rather than just applying.
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Graham88
Member
Registered: 16th Apr 07
Location: South East Kent Drives: E46 M3
User status: Offline
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Thanks, last 3 posts were what I wanted to hear. They do talk a load of trife in banks.
I hope it won't be that high Danny I paid 18.9% last time for £3500.
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deano87
Member
Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline
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Try Sainsburys Finance. They seem quite reasonable.
I looked at £1500 and would pay back £1700 in total. Give or take.
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Graham88
Member
Registered: 16th Apr 07
Location: South East Kent Drives: E46 M3
User status: Offline
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Cheers Deano, will give them a try 
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Ste
Premium Member
Registered: 5th Mar 03
Location: Taif, Saudi Arabia
User status: Offline
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also worth a look on the price comparison sites
I would rather lose by a mile because i built my own car, than win by an inch because someone else built it for me.
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A2H GO
Member
Registered: 14th Sep 04
Location: Stoke
User status: Offline
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quote:
Originally posted by deano87
Normally puts a worse mark on if you get declined for the loan, rather than just applying.
FAIL. The check does not state whether or not that particular application was accepted/declined it just shows that particular company did a check.
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Graham88
Member
Registered: 16th Apr 07
Location: South East Kent Drives: E46 M3
User status: Offline
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quote:
Originally posted by Ste W
also worth a look on the price comparison sites
I didn't even know they did price comparism sites for loans, any recommended ones?
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Tommy L
Member
Registered: 21st Aug 06
Location: Northampton Drives: Audi wagon
User status: Offline
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Just use compare the market graham
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oceansoul
Member
Registered: 19th Jun 06
Location: Sunbury, Surrey
User status: Offline
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TBH dont buy what you cant afford. If you cant afford then save for. Only exception being a mortgage. IMO of course.
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John
Member
Registered: 30th Jun 03
User status: Offline
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Or get it now and still be able to afford what you'd put away every month saving for it.
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ed
Member
Registered: 10th Sep 03
User status: Offline
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That's a bit of a childish view, loans are useful products.
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Graham88
Member
Registered: 16th Apr 07
Location: South East Kent Drives: E46 M3
User status: Offline
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quote:
Originally posted by oceansoul
TBH dont buy what you cant afford. If you cant afford then save for. Only exception being a mortgage. IMO of course.
What's not being able to afford it got to do with anything. I can easily afford 8k, unfortunately I can't muster it out of mid air and I want a car now because quite frankly I'm impatient, so thats what a loan is for.
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Ben G
Member
Registered: 12th Jan 07
Location: Essex
User status: Offline
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quote:
Originally posted by oceansoul
TBH dont buy what you cant afford. If you cant afford then save for. Only exception being a mortgage. IMO of course.
he can afford it easily though!!!
i hate people that say ''you can't afford it'' even though you can easily pay the money back every month.
i wanted a focus st and went and got one. didn't have a problem getting one on finance but imagine saving up 18000 pounds.. that's take ages.
much easier to get finance then pay it back out your wages every month.
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Graham88
Member
Registered: 16th Apr 07
Location: South East Kent Drives: E46 M3
User status: Offline
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Exactly I prefer loans over finance but it's the same thing it's nothing to do with being able to afford it.
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deano87
Member
Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline
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The only thing that puts me off getting a loan is not being able to pay it back i.e. in the event of losing my job.
Most won't even offer payment protection insurance with it now.
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Graham88
Member
Registered: 16th Apr 07
Location: South East Kent Drives: E46 M3
User status: Offline
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The quotes I've had so far, PPI is absolutely ridiculous. £1200 in most cases. My job is safe, so I'm just gonna go without it I reckon.
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John
Member
Registered: 30th Jun 03
User status: Offline
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I just make sure the car is always worth more than I owe, solves the problem.
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