Hi Halfife

Having come across a flyer in a magazine for A&L loans (now advertised at 6.3% APR typical) the very small print at the bottom refers to new customers only...... Why loyal customers with no defaults or problems should not be offered these deals is beyond me - as proved by you above, all it makes people do is look elsewhere (and therefore becoming the said new customer...)

Banked with Nationwide all my life, can highly recommend them.

At last my faith in humankind is restored.  Firstly, got a credit report...no problems there, in fact quite the opposite.  Then went searching again and the good people at Tesco were more than willing to help my needs with a loan at 6.7% which is above wot A&L were advertising but at least they kept to their word and supplied a loan at that value.

 Was looking at the A&L current account but they have no chance now.  Nationwide here I come.

Thanks for the advice etc

Maybe again in the future. Halflife

Hi Halflife, because of the stink about companies misselling insurance on products like loans i don't think it does have an affect on the APR. I totally agree with Andy though the typical APR is near on impossible to achieve as it is directed at a certain (tiny) group of people.

The other naughty thing about it is most banks will now guarantee you their typical rate if you for example open a current account with them. Showing that the risk thing is a load of beep because i don't see how opening a current account with them necessarily lessons the risk!

Of course they are natural hope you are living your halflife to the full!

Pinkcurlz

Hi Halflife..... This "scam" has been going on for years, I call it a scam but that may be a little harsh. There are a lot of direct lenders who offer fantastic APR's in print, but in reality the customer "never" seems to get this rate. They can get around it with the words Typical APR. There may be absolutely nothing on your credit search so i wouldn't worry too much, and the lenders don't have to justify their reasons for the apr they give you, but after so much effort in applying most people just go ahead with the rate and sign up as it's too much hassle to go elsewhere. The lender wins again. If all lenders advertised their TRUE actual rates given you'd be surprised as to some APR's people are given!

Good luck

Andy

Sorry to hear about your keyboard stammer. The loan application was over the phone.  Having thought about the "interview" can't help thinking that the guy wasn't satisfied with the "how will I keep up repayments if made redundant or suffered longterm illness" questions.  (sell the car!!) It was if he was trying to push protection cover. So don't know if 6.4% was linked to the cover he was hoping to sell. (No chance)

 Are the pink curlz natural?

Hi Halflife, Can i ask if you did the Application on the telephone, internet or in Branch? Doing the application on the telephone or internet always comes out at a higher APR for some reason. I wouldn't think settling the loans early would have a negative effect on your rating if anything i thought it would improve it. PinkCurlz x whoops sorry bout the above messages don't know what happened for a second! Keyboard went crazy and developed a stammer!

Hi Halflife,

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I have contacted Experian for a credit report so that should give me some info. Is it possible that clearing loans before they are complete could affect the credit rating?  I have just cleared a couple of loans (money from a bonus scheme at work)

 Thanks

I'm struggling to add anything other than Fiamold has offered.

You have been what's called in the industry "Rate For Risk". A&L believe there is a slight risk to lending you the money, so to mitigate their losses, they increase the APR.

And as Fiamold says, it might not be that you have poor credit, it might be that you don't have enough.

Have you asked Experian/Equifax for your credit report to see if there is anything untoward on it?

Tim

The only people who can really explain the decision is A&L.  But one option is maybe that there is something that you are unaware of that pulls your credit rating down.  Or equally, that you might find that it is the opposite - and that you havent had enough credit (although you have obviously had some) to demonstrate sufficiently that A&L will give you the 6.4%.  Also, you dont mention it, but if it is rented rather than mortgaged that could affect it.  Also affordibility with all your other commitments.

In a nutshell, these very good rates are often targetted ar very specific people.

Hi, just joined and hoping to get some advice.  I have recently applied for a loan with the A&L, who are currently offering loans from 6.4% APR.  After answering questions for nearly 20 minutes, I'm advised that I have been successful and that I can have my loan (10k over 4 years) at 10.4%.  The question is why such a high  interest rate.  I have an excellent credit rating, never defaulted on any repayments on anything, earning a good salary and in a secure job. Have lived in the same house for 10 years. To make matters worse I have just settled a loan  with the A&L early. The guy tried to find what was going on but to no avail. Any suggestions?

 Seriously disappointed

 Thanks