Morning,

Just wondering if anyone knows, but the OH has been with his bank for years and years, has a loan with them already and credit card, and he wanted to pay those off and add £2k for a car, so his bank quoted him a good price (which would've been less than he is paying now for loan and min. payment on card) but when the paperwork came through instead of 8% interest quoted, it was 18.9% and repayments much higher. Bit confused as most of the loan is to repay debts he already has with them with lower interest rates so makes no sense. He checked his credit score/ record before applying which was good, he's not had any charges/fees on his accounts and not paid late on his card or loan. He's been in his job over 18 months with a regular wage into his account same day every month, he's lived at his current address for over a year and is on the electoral role there.
They said it could be anything from adverse credit history ( can't be) to just that he didn't score high enough on their system which takes loads of things into account, but as I said, as most of the loan would be repaying themselves I can't see the logic plus if he is paying more that what he was quoted in the first place out now then it stands to reason he'd be able to afford the repayments quoted.

Anyway I am rambling again...

where do you reckon a good place would be to apply for a loan- he only has accounts with the bank in question (yorkshire bank) so do you reckon he'd get a loan with a different bank if he has no other dealings with them? As I said he's a tenant not homeowner so that could hold him back? Any ideas?

Ta:cool:

Check out some loan comparison sites on Google, remember however that if the loan isn't secured on a mortgage (as your OH's wont be), then APR is likely to be higher than expected.

There is some general information on loans and those who offer them at http://www.loanswebsite.org.uk/.

The answer is yes, if his credit rating is good most banks and building societies would be pleased to lend him money. So would places like Tesco or Sainsburys who pretend to be banks these days. But it might be worth checking his credit file first, just in case there's somthing there that shouldn't be. This could be why he's been offered a higher rate than expected, and would affect any other loans he applies for.

The answer is yes, if his credit rating is good most banks and building societies would be pleased to lend him money. So would places like Tesco or Sainsburys who pretend to be banks these days. But it might be worth checking his credit file first, just in case there's somthing there that shouldn't be. This could be why he's been offered a higher rate than expected, and would affect any other loans he applies for.

Hiya, I might try tesco etc. we checked his credit file and everything was good, his score was very good (their words) at 899/1000 (credit expert/ experian).

Although he rents, is he on the electoral roll? If not this can affect your credit rating. Also, for some strange reason, having a landline phone also makes a difference to some lenders.

Don't apply to too many places, because too many credit searches harms your credit rating too.

www.moneysavingexpert.com is often recommended on here and is a good site for any money advice.

Try moneysupermarket.com
Never get a loan from your own bank- they aint there to help you out!!