Tenant Loans - Why Can't I Get The Low Rate Advertised?

By Author: Carol Jameson
Total Articles: 21
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Seems simple doesn't it? You go online. You find a website you feel comfortable with and that offers unsecured loans for tenants and tenant loans at a low rate and you apply. Naturally! Ah, but then you get an offer and for some reason, you don't get the rate that you thought you were going to get. What's happened to cause that? Why can't I have the rate that I applied for?

For many people all over the country, this scenario is one that they will readily recognise. Understandably, they are disappointed and if truth be told, a little upset by the experience. The lender says that they aren't able to offer that rate to them but they won't say why.

So What's Going On?

There are generally two things that could be occurring here. The first is that yes, the lender or broker may have certain plans that it is possible to meet the criteria for, that carry the low rate that they advertise. However, very few people that enquire can actually meet the criteria in reality.

The law says that when a company advertises a certain rate, they must also show their typical rate or the rate ...
... that at least 66.6% of their customers actually get and it must have a particular level of prominence in the advert. You will note that this can be quite different to the low rate you were attracted by. It's simply a marketing ploy to get you to respond to that company as opposed to anyone else but there is often little real substance to it.

The second reason is down to the applicant. Low rates are attributed to loans that carry very low risk and for larger amounts of money over longer terms. The lender can afford to offer unsecured loans for tenants and tenant loans at a lower rate because the amount of profit that they stand to make on the loan over its lifetime can be considerable, even at this lower rate because you will be paying the loan off over a long period of time, which means that interest on the loan will be accruing for longer.

If you carry a higher level of risk because of your credit history or you're asking to borrow a smaller amount of money over a shorter term, there is less profit attached to that deal for the lender and in order to make it viable, they will need to offer the money at a higher level of interest than before.

Your credit history can make a considerable difference to the cost of unsecured loans for tenants and tenant loans. If you have missed repayments to any line of credit, run into arrears, defaulted or ultimately received a CCJ for non payment, this will show on your credit file which a lender will want to have access to prior to deciding whether they will grant you the loan you want. People with this type of adverse can expect to have more difficulty in getting accepted for a loan than those that have a perfectly clean record.

Unsecured loans for tenants and tenant loans are comparatively easy to enquire about but low rate loans are generally more difficult to get because the applicant will need to fit a particular niche to satisfy the criteria, and that is not always as easy as it may seem!

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