Jules S
Premium Member
Registered: 24th Dec 03
User status: Offline
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I don't seem to ever have got an 'advertised' APR loan in the last 20 years or so.
Always had a mortgage with no arrears, car loans with no arrears, contract phone etc.
The only thing I don't do is credit cards...
I never really understood the 'you have no credit history - so you are a credit risk' myself 
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Kano
Member
Registered: 29th Aug 04
Location: Fife
User status: Offline
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quote:
Originally posted by Jules S
I don't seem to ever have got an 'advertised' APR loan in the last 20 years or so.
Always had a mortgage with no arrears, car loans with no arrears, contract phone etc.
The only thing I don't do is credit cards...
I never really understood the 'you have no credit history - so you are a credit risk' myself
I went for a mortgage last year and was told by the bank that its a complete myth and that they hear similair stories all the time. I have never had a loan, credit card or anything in my life and walked into the bank and was offered a mortgage without any issues. Managed to get a good rate aswell. Since then I've taken that mortgage and got a car on finance at a good rate aswell with no issues.
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Jules S
Premium Member
Registered: 24th Dec 03
User status: Offline
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quote:
Originally posted by Kano
quote:
Originally posted by Jules S
I don't seem to ever have got an 'advertised' APR loan in the last 20 years or so.
Always had a mortgage with no arrears, car loans with no arrears, contract phone etc.
The only thing I don't do is credit cards...
I never really understood the 'you have no credit history - so you are a credit risk' myself
I went for a mortgage last year and was told by the bank that its a complete myth and that they hear similair stories all the time. I have never had a loan, credit card or anything in my life and walked into the bank and was offered a mortgage without any issues. Managed to get a good rate aswell. Since then I've taken that mortgage and got a car on finance at a good rate aswell with no issues.
To be honest, mortgages are a different kettle of fish to short term low value loan rates where the 'headline' rate is concerned IME. If you buy a house with a mortgage the lender effectively owns it anyways, and 'usually' the collateral in the property will cover the loan...hence the advertised rate is what you get.
I blew the VX engine up last year and faced a circa £4k bill. I didn't have the monies in the bank to cover the bill, so I HAD to get a loan. Searched all over and didn't get one offer less than 1.5% above what the banks/BS were advertising as their 'rates'
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Pop
Member
Registered: 8th May 03
Location: Reading
User status: Offline
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Jules it's because headline rates only have to be offered to a certain % of applicants over a specigic period of time, this can be as short as minutes iirc.
You can request that the banks etc provide you with that information.
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Jules S
Premium Member
Registered: 24th Dec 03
User status: Offline
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quote:
Originally posted by Pop
Jules it's because headline rates only have to be offered to a certain % of applicants over a specific period of time, this can be as short as minutes iirc.
You can request that the banks etc provide you with that information.
FFS, I hate banks/lenders.
That's no better than DFS doing 20 or so 'sales' a year.
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Eck
Premium Member
Registered: 17th Apr 06
Location: Lundin Links, Fife
User status: Offline
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To put it simply Graham, you get paid more of a bonus for selling insurance, than you do the loan itself, so she was basically trying to scare you into taking the loan with the insurance. Which is actually illegal, and the ENTIRE reason there are all of these companies who will get your Payment Protection Insurance back due to mis-selling. As already said, your credit won't really be affected for getting the quote, but if you get rejected, it'll then put a negative mark against you. It's also worth noting if you get rejected, you'll find it harder to get a loan with anyone else within a month of the rejection. As already said, use a loan comparison site. PS; you get a cheaper rate online than you do in branch  That's what it was with HBoS anyway, I'd imagine it's the same with other banks.
[Edited on 12-01-2010 by Eck]
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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 Eck
To put it simply Graham, you get paid more of a bonus for selling insurance, than you do the loan itself, so she was basically trying to scare you into taking the loan with the insurance. Which is actually illegal, and the ENTIRE reason there are all of these companies who will get your Payment Protection Insurance back due to mis-selling. As already said, your credit won't really be affected for getting the quote, but if you get rejected, it'll then put a negative mark against you. It's also worth noting if you get rejected, you'll find it harder to get a loan with anyone else within a month of the rejection. As already said, use a loan comparison site. PS; you get a cheaper rate online than you do in branch That's what it was with HBoS anyway, I'd imagine it's the same with other banks.
Cheers. Yeah I knew she would be on some kind of bonus, but she really did do well at trying to scare me, she was saying if I die or lose a leg and lose my job over it they'll still want the money. 
I've just had a look at the Go Compare website for loans. I only filled in basic details such as name, amount, address and phone numbers and it's telling me what APR I can get, how does that work? The only stage after that is to actually apply for the loan which I presume you'll then get what rate you'll actually recieve. I'm not bothered about specifically going with my bank I just thought it would be easier, online is definetly looking cheaper.
Alliance & Leicester, 7.9% APR, £8000 loan, £8666 payable @ £361 a month. Easily doable.
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Eck
Premium Member
Registered: 17th Apr 06
Location: Lundin Links, Fife
User status: Offline
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The rate you were given would be the typical APR. You'll get the proper amount when you apply for the loan. A wee thing that might help... Go to Experian.co.uk, and sign up for your credit report. The first month is free, but you need to use your bank details. This gives you a precise reading of your Credit History. Any missed/late payments etc If it all comes back really good, you have a better chance of getting a 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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Ok I'll go give that a go now, cheers 
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Graham88
Member
Registered: 16th Apr 07
Location: South East Kent Drives: E46 M3
User status: Offline
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Done it, says it might take a couple of days as they're doing checks. Fingers crossed.
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deano87
Member
Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline
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News?
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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 was going to post on this yesterday but didn't think anybody would be interested. The site Eck posted is brilliant and I got the login details for it yesterday. I've got quite a good credit history and in the 'green' as it were. Filled out a request for loan application based on my details and got a phone call about 5 mins later:
Quick Decision Loans
£406.78 monthly
£9700.00 payable
19% APR
They are having a laugh although I have a feeling that is one of those rip off companies going by the name.
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ed
Member
Registered: 10th Sep 03
User status: Offline
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Try http://www.zopa.co.uk
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Chris
Premium Member
Registered: 21st Sep 99
User status: Offline
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Best thing to do is visit your own brach and advise them you are leaving, for another bank with an offer of the APR you wish to pay.
I it most likely they will beat the offered APR to keep your business as they know in a few years you will be back to borrow more.
Some banks currently have a lower ability to lend money due to most of the borrowing customers get 3% rates and making little profit for them.
If you have never taken out a loan you dont have any previous credit information so this may well be reflected in the offered APR.
Also make sure the loan is not front loaded, this means you will not pay of capital per month if you wish to move the loan another leander.
Another option is Barclays Premier account that offer 0% overfrafts for 10 notes a month plus you get some other extras, also the larger amount you take out will lower the APR
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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 ed
Try http://www.zopa.co.uk
Is that quite a recognised site? I like the idea of no charge for paying it off early. It reduces the interest quite highly that way making it possibly cheaper than paying less APR but having to see the loan period through.
I will have to go back in Chris and get them to give me an actual quote based on my credit without listening to their trife about it affecting my credit score. Cheers for the info
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AndyKent
Member
Registered: 3rd Sep 05
User status: Offline
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Zopa is well recognised. The money you borrow is loaned by 'normal' people who set their own interest rates. You might get a good rate with them, you might not, but definately worth a look.
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Graham88
Member
Registered: 16th Apr 07
Location: South East Kent Drives: E46 M3
User status: Offline
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Sounds quite good, I'll give them a go thanks 
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Eck
Premium Member
Registered: 17th Apr 06
Location: Lundin Links, Fife
User status: Offline
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Don't get an HBOS loan if you intend to pay it off early as the interest is Front Loaded and chances are by the time you go to pay it off, you'll make no saving. Oh, and Chris, whichever bank you are with CANNOT change the APR to try and better another company. The computer decides the APR, not a person. Even the underwriters cannot change the APR (except when another loan is accidentally keyed and there is photographic proof of an earlier APR offered).
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Graham88
Member
Registered: 16th Apr 07
Location: South East Kent Drives: E46 M3
User status: Offline
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Well I got it, just needed 6k in the end, quite a high APR (15.9%), but the typical APR was quoted at 11.9% so I just went for it, couldn't be bothered to 'shop' around for the sake of a couple of percent which I probably wouldn't have got. It's with Abbey (or Santander should I say)
£373.88 a month over 18 months with a total payable of £6729.84 plus the option of ending early, sorted.
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deano87
Member
Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline
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Not too bad. Crazy payments £373 
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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 want it gone, even the woman was surprised I wanted to pay that much each month
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AndyKent
Member
Registered: 3rd Sep 05
User status: Offline
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Not bad at all. Only £700 interest over 18 months is pretty good tbh.
I'd take exactly the same deal - just get it paid off asap, no point stretching it out over three years just so you can pay another £700 (or more) in interest!
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Graham88
Member
Registered: 16th Apr 07
Location: South East Kent Drives: E46 M3
User status: Offline
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Yeah that was my thoughts. Even going to 24 months added another £400 in interest. Screw that shit
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