The banks are under obligation to offer the typical rate to I believe 66% of successful applicants with the other 33% getting varying rates. This has always been the case. What you have experienced with the Co-op is no different to what countless others have with all the banks. As frustrating as it is its simply the way it works.

I would suggest many, many people with a "good" experian score wouldnt even get offered a loan based on other criteria.

Eco

The current unsecured lending policy of the Co-op bank includes the online criteria 'minimum £15,000 annual salary'. I have a very good credit rating and minimal outgoings and have just been refused a loan with the Co-op, because their minimum salary is actually £17,000!

hochy1948:This post also relates to Mac's comments his Northern Rock's loan application. I applied for a loan from The Co-Op, whom were offering 5.9% to people with an "Excellent" or "Good" credit score. I am fully aware that these banks do searches on credit scoring in this case it was with Experian and that the rate that is offered to you depends on your credit score. Over the past year I have been carefully monitoring my Credit Score and I checked it before applying, I had a "Good" credit score according to Experian, therefore I should have been entitled to the 5.9% the bank were offering. Like mac, when I received the Terms and Conditions I was actually offered a 13.9% loan, a big difference to what was being advertised. This brings me to the conclusion that because the Banks are not under the obligation to offer the low rate that they advertise, so they actually offer a higher rate, which doesn't seem to be affected by Good credit. They rely on people that need a loan badly enough, so much so, they will sign any Terms and Conditions offered to them, making me realise where these Banks make their huge profits. My conclusion - I have not taken up the loan offered to me at just under triple the rate advertised, despite my GOOD credit score and the Co-Op isn't such an ethical bank after all.

Fact check: Credit Score is *NOT* the same as Credit Rating. Credit Rating is what you get from Experian, Equifax, etc. It measures how well you have conducted your financial history. It is also known as a bureau score in the industry. Credit Score is a different concept altogether. That is based on a combination of your bureau score and a number of other factors such as time at address, time with employer, job title, marital status, net monthly income, etc etc. For example, someone who has been at their address for 10 years scores higher than someone who has been there 6 months. In addition, lenders set policies depending on their bad debt statistics. It may be that people of a certain age in a certain part of the country and a certain marital status go bad more then the normal amount. If you fall in that category, they will increase the rate there also. Distinguishing between credit rating and credit score is the important point.

This post also relates to Mac's comments his Northern Rock's loan application. I applied for a loan from The Co-Op, whom were offering 5.9% to people with an "Excellent" or "Good" credit score. I am fully aware that these banks do searches on credit scoring in this case it was with Experian and that the rate that is offered to you depends on your credit score. Over the past year I have been carefully monitoring my Credit Score and I checked it before applying, I had a "Good" credit score according to Experian, therefore I should have been entitled to the 5.9% the bank were offering. Like mac, when I received the Terms and Conditions I was actually offered a 13.9% loan, a big difference to what was being advertised. This brings me to the conclusion that because the Banks are not under the obligation to offer the low rate that they advertise, so they actually offer a higher rate, which doesn't seem to be affected by Good credit. They rely on people that need a loan badly enough, so much so, they will sign any Terms and Conditions offered to them, making me realise where these Banks make their huge profits. My conclusion - I have not taken up the loan offered to me at just under triple the rate advertised, despite my GOOD credit score and the Co-Op isn't such an ethical bank after all.