Loan Applications What Rate

Loan Applications What Rate

Loan Applications – What Rate?
The introduction of​ personal pricing into the​ loan market has caused confusion for the​ consumer regarding exactly what rate they’re likely to​ be quoted when it​ comes to​ a​ loan .​
Add to​ this the​ fact that if​ they fish around for quotations for alternative rates they’ll be penalised for making too many loan applications and the​ state of​ affairs is​ far less then satisfactory.
HSBC,​ Barclays and the​ Halifax have adopted this personal pricing policy,​ It used to​ be the​ norm for a​ typical rate to​ be advertised,​ but now what you​ get offered is​ a​ personal deal based on​ your credit history .​
Deals advertised by other lenders may show a​ low APR but a​ check of​ your credit history might result in​ uplift in​ this rate.
Whenever you​ make an​ application for a​ loan,​ lenders will apply to​ a​ credit-reference agency and depending on​ the​ report which they receive they’ll make the​ decision regarding the​ rate at​ which your loan will be offered .​
Or maybe they’ll make the​ decision not to​ offer a​ loan at​ all!
You can make your own application to​ one of​ these credit reference agencies .​
It’ll only cost you​ £2 and it’s surely worth that to​ find out just what your rating is​ .​
It could be that there’s a​ mistake on​ your record – something which can easily be sorted out by contacting the​ agency.
Too many credit applications showing up on​ your record will make lenders wary of​ lending money .​
These applications show up as​ footprints incidentally .​
This makes it​ very unfair if​ all you’ve been seeking is​ the​ best deal.
There is​ a​ way to​ solve this .​
Making a​ quotation search would enable a​ lender to​ have a​ look at​ your file,​ assess your risk profile and inform you​ of​ their interest rate offer .​
This would show on​ the​ records as​ a​ quotation search,​ rather than an​ application and would not leave footprints.
That would seem to​ solve the​ problem then? You’d imagine so,​ but in​ fact the​ big banks have not adopted the​ method and don’t offer their customers this choice.
Experian,​ one of​ the​ two major credit reference agencies claims that they have sent details of​ the​ quotation search,​ introduced back in​ 2004,​ to​ a​ wide range of​ lenders and have ensured media publicity .​
An explanatory leaflet which they send out to​ would-be borrowers puts emphasis on​ the​ point that they need to​ clearly explain that they are merely asking for a​ quotation of​ interest rate,​ on​ which to​ base their possible application.
The banks claim that the​ costs of​ offering this service would be costly and would involve new software and staff training .​
They also say there has been little consumer demand for it.
It may well be that if​ more people were aware of​ the​ product,​ then the​ banks would find a​ very different response.
Consumer group Which? claim that the​ current system is​ not in​ the​ consumers best interests .​
They would prefer to​ see companies offering quotation searches as​ part of​ the​ marketing process .​
a​ spokesman for the​ Banking Code Standard Board states that they will take a​ sounding of​ members to​ see if​ this is​ a​ major issue .​
If so,​ a​ review could be appropriate.
What consumers need is​ to​ be told exactly what the​ interest rate would be before they make an​ application for a​ loan .​
By using a​ quotation search,​ this would seem to​ be entirely possible,​ without any detrimental affect on​ their personal credit file.
Go on​ line for help with this .​
Rather than apply to​ an​ individual lender,​ you​ be better advised to​ find a​ broker will be up to​ date on​ the​ situation and can offer advice on​ getting an​ assessment of​ your risk profile,​ finding the​ right lender and getting you​ the​ very best deal.

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