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I've just applied for a loan, can I apply for another?

(20 Posts)
BasinHaircut Sun 08-May-16 06:50:03

I applied for a loan on Thursday. I didn't get the advertised rate and the rate they have given me makes the payments £10 a month higher over 5 years so quite a big difference in the amount I would have to pay back.

My bank has a loan available at the same as the advertised rate for the one I applied for and I'm wondering if I have a barter chance of getting that or closer to that because I bank with them.

But I know that when they credit check you it leaves a mark on your credit history. Does that mean that it would affect the chances of me successfully applying for a different loan so soon after applying for this one?

BasinHaircut Sun 08-May-16 06:50:46

*better, not barter

ChalkHearts Sun 08-May-16 06:55:23

Not all loan quotes are on your credit file.

If you just got a quote but didn't apply for the loan it may well not be on your credit file.

I think it would be fine to get another quote for a loan. If both quoted were on your file all it would show is that you're shopping around for the best rate which is fine to do.

AJ279 Sun 08-May-16 07:03:34

I think two or three credit checks in a six month period for a loan are fine, it's when you do 3+ it gives the impression you are struggling to secure finance.

BasinHaircut Sun 08-May-16 07:09:15

Ah ok. I did apply yes so definitely would've left a mark on my file.

If I did apply for another and got declined on the basis that I'd applied for another one recently could they withdraw the loan I've been offered? They've send all of the paperwork for me to sign already but I guess it's done a done deal until I send that back. Will they check again?

Twowrongsdontmakearight Sun 08-May-16 07:09:20

It's worth a try. You can get a loan to pay off a loan. Bear in mind though that the advertised rates are the 'from' rates, like holidays. Even if you bank with them you might not qualify for the lowest rate. It depends on lots of factors.

BasinHaircut Sun 08-May-16 07:11:10

Yeah I know I might not get the advertised rate but I'd like to try my own bank just to be sure I've got the best one I can. Otherwise it's another £600 interest shock

ChalkHearts Sun 08-May-16 07:11:36

If they've sent you the paperwork they won't check again. They want to give you the money. (Remember this is how they make their money!)

BasinHaircut Sun 08-May-16 07:19:13

In that case I've nothing to lose have I! I shall try my bank then.

Also, do you know when they ask you what your monthly payments for e.g. Mortgage/rent are, do I put the full amount or half as its joint with DH?

grumpmitchell Sun 08-May-16 07:22:50

If you go on to Martin Lewis's 'Money Saving Expert' site there's a tool where you can put in your details and it will give you an idea of how likely you are to be given a particular loan, based in the criteria of the bank and your own personal situation. It doesn't put a marker on your credit score but it gives a fairly accurate idea. Give it a Google!!

BasinHaircut Sun 08-May-16 07:40:07

Ohh I did that already thank you!

It gave me 90% chance with my own bank but now I've looked again the advertised rate is t quite as good. Still better than I e been offered though

Nepotism Sun 08-May-16 07:57:56

Worth using Noddle to check your credit score for free. I applied for a loan with my own bank and was horrified to be offered 8.9% instead of the 3.5% advertised. I've paid off my mortgage, good income and only one zero percent credit card.

ChalkHearts Sun 08-May-16 08:09:28

If you've paid off your mortgage that negatively effects your credit score!

Because you get a good credit score by paying off your loan / mortgage / credit card each month. If you don't have any credit, so don't make any monthly payments, your credit score is worse!

ChalkHearts Sun 08-May-16 08:10:43

Your credit score is also effected by who you live with. If someone in your house has a bad credit score it'll also negatively effect yours.

ordinarylives Mon 09-May-16 09:00:40

Chalkhearts thats not the case at all. You have to have a financial association with someone else, ie joint loan/mort etc for another person to affect your credit file. Address is irrelevant.

Nepotism Mon 09-May-16 10:30:11

I haven't lived with DH for six years and he showed up as someone I had an association with. He's never lived at my house.

BarbaraofSeville Thu 12-May-16 10:46:29

Any news OP? I was in the same situation a few months ago. Applied for a loan with Sainsburys at a good rate and they gave a rate so shit there was no way I would take the loan so I applied to my own bank which is Santander and was accepted at only a tiny amount more expensive than the best Sainsbury's rate.

So I took the Santander loan and politely told Sainsburys where they could stick their shitty expensive loan.

BasinHaircut Thu 12-May-16 11:30:19

Yes same here Barb.

Got one with my own bank that is at the rate they actually advertised! Not quite as good as the sainsbo's advertised rate but still saves £300 in interest compared to their rate.

Clearly they don't ever intend on giving that rate and are just trying to lure people in.

Nepotism Thu 12-May-16 14:55:12

They only have to offer the headline rate to 51% of applicants.

BasinHaircut Thu 12-May-16 16:03:37

It's strange that both Barb and I got good rates with other banks though, but weren't good enough for Sainsburys!

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