Need A Loan Guess The Interest Rate

Need A Loan Guess The Interest Rate

Need a​ Loan? Guess the​ Interest Rate
How do you​ find the​ best interest rates if​ you’re planning to​ apply for a​ loan? Until relatively recently,​ it​ was simple .​
There were plenty of​ lists of​ comparative rates published in​ table form on​ various websites .​
You could take your pick and investigate the​ terms of​ the​ cheapest lenders .​
This approach is​ not so easy any more.
Many banks are choosing to​ use a​ new system where the​ rate offered is​ dependent on​ your personal credit profile .​
At first glance,​ this appears to​ be a​ very fair system,​ but in​ fact would-be borrowers will have no idea of​ what interest rate they’ll be offered and so will be unable to​ make comparisons.
The Halifax,​ HSBC and Bank of​ Scotland have all switched to​ personal pricing and no longer advertise typical rates .​
In fact,​ most of​ the​ twenty leading lenders have adopted this method .​
The result of​ this is​ that customers applying for a​ loan will have very little idea of​ what rate they’ll be offered,​ or​ whether they’ll be accepted .​
This is​ a​ ridiculous situation as​ no should have to​ go blind into a​ credit application without a​ good idea of​ the​ interest rate.
It’s difficult to​ find out the​ rates by multiple loan applications,​ as​ each credit application is​ marked on​ your credit file .​
Lenders are understandably concerned where there have been excessive searches carried out and therefore the​ apparently simple process of​ achieving the​ best rate for your loan could affect your credit rating!
Even applying to​ your present bank for a​ loan will still require a​ credit check,​ but you​ may be able to​ gain some idea of​ what the​ interest rate is​ likely to​ be and most banks would,​ presumably,​ like to​ keep your business.
A representative of​ one of​ the​ leading banks has said the​ lending is​ on​ dangerous ground at​ present and that there are huge debt problems in​ the​ UK .​
Because of​ this,​ loan applications are increasingly likely to​ be rejected.
Where banks are still advertising headline interest rates it​ appears that lenders are failing to​ follow through with offers to​ a​ high proportion of​ applicants .​
Those who are successful are often offered a​ higher rate than the​ one advertised.
The Consumer Credit Act 2004 stipulates that lenders who advertise loans using a​ typical rate must lend money at​ that rate to​ at​ least 66% of​ successful applicants .​
Obviously by not showing a​ commitment to​ a​ rate,​ lenders can evade this rule.
A recent survey showed that,​ of​ almost 3,​000 people who applied for a​ loan,​ 40% were refused almost immediately and 25% were accepted without delay .​
However some days later the​ remaining applicants were still waiting for a​ reply and it​ is​ expected that a​ further 17% will fail to​ be granted the​ rate they applied for.
There are a​ great many people applying for loans with the​ lowest headline rates and very many of​ them are going to​ be disappointed .​
Doubly so,​ as​ with every rejection they are putting the​ chance of​ obtaining a​ loan from another lender in​ jeopardy.
A browse through the​ internet will find you​ an​ advisor who should be able to​ offer some guidance and help you​ to​ avoid any nasty surprises.

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