Why Did I Not Get the Rate Advertised for a Loan?

Written by Daniel Tannenbaum on May 12, 2021

Updated March 1, 2022

If you haven’t got the rate that was advertised for a loan, you might be wondering why this is –  the answer: it can be a number of different things!

Not getting the rate that was advertised on a loan can leave some borrowers feeling confused – especially those in employment with a regular income, strong credit score and even homeowner status (all commonly deemed as important, positive factors in a loan application).

In this guide, Lending Expert explores some of the main reasons as to why you didn’t get the rate advertised for a loan, and the ways in which you can help increase the chances of getting this rate in the future.


What Does Representative APR Mean?

To understand why you didn’t get the rate advertised for a loan, you’ve firstly got to understand what this advertised rate is – otherwise known as the Representative APR.

The Representative APR (or “Annual Percentage Rate”) refers to the annual cost of a loan, and helps prospective borrowers to get a clearer picture of the price of loans.

Lenders have to ensure that the Representative APR is available to 51% of borrowers. This means that if you fall in with the other 49%, the lender is not legally obligated to give you this advertised rate.


How Can I Get the Advertised Rate?

To increase the likelihood of getting the advertised rate, you should make sure you have:

  • Good credit history (check your credit report for free)
  • Stable income and employment
  • Good history with the lender or provider
  • Homeowner status
  • Within the right age or demographic
  • The right time for the lender

UK lenders may only offer the advertised rate to people with good credit histories or because they can only offer it to a certain number of people each month. You may find that the lenders are more restrictive towards the end of the month if they have reached their lending thresholds, in which case you may find that you end up paying a higher rate.

There have been cases where two similar candidates have applied but received different rates – and sometimes it can come down to the lender and their own monthly targets.





Why Am I Not Eligible For a Loan?

There can be a number of different reasons why you’re not eligible for a loan, many of these factors also contributing to those who get APRs higher than those advertised.

Below is a list with some of the main eligibility criteria applicants will have to meet with Lending Expert:

  • Applicants must be over 18 years old
  • Applicants must be employed
  • Applicants should have a good/fair credit score (although certain lenders can consider those with bad credit)
  • Applicants must be able to prove they can afford the loan repayments
  • Applicants must be full-time UK residents
  • Lender has reached their limit for the month

If you are wondering why you didn’t get the rate as advertised for the loan, or have found yourself being declined for the loan entirely, you can ask the lender why this is by contacting them directly. Getting answers from the lender can help you to address the issues in your application, and improve these for future borrowing activities.

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