Revolut loan offer APR nearly double what’s advertised

[sicky12]

I applied for a small home improvement loan from Revolut and was approved for almost the amount I’d requested. However, the advertised APR is 5.99%, but I was approved for an interest rate of 9.95%! I contacted customer care and they said that 51% of applicants are approved at 5.99% or LOWER, but that I wasn’t.

I’ve only ever taken out two loans, both of which I repaid early. I have a mortgage, on which I’ve never been late with repayments. I have no other debt and no credit cards. Can anyone give me an idea of why I don’t qualify for the lower APR? Has anyone been approved at 5.99% or lower themselves?

 

[tammy625]

@sicky12 I believe that the higher the amount borrowed the lower APR is available. Try playing with the amount and see what will be the APR offered.

 

[sicky12]

@tammy625 Thanks! I didn’t get the APR til I’d put in the application. Not a huge loan so doesn’t make a huge difference, but it’s the principle!

 

[veveronka]

@sicky12 No it's the interest

 

[sicky12]

@veveronka

 

[rosyy57]

@sicky12 You don’t have to accept there offer. Higher risk loans cost more unfortunately. While you haven’t defaulted before, you might not have built up enough assets and equity to justify the lower rate

 

[sicky12]

@rosyy57 Thanks for the info.

 

[cam1987]

@sicky12 The lesser the principal, the lighter their principles

 

[llklein165]

@sicky12 I took out a 15k loan with them at 7.5% but repaid it as quickly as possible. The app is great for clearing the loan as you can pay off additionally to your agreed monthly repayment. I’m at a point now where I’m avoiding getting another loan.

 

[sicky12]

@llklein165 Yeah see I do love the usability of the app, but this feels too close to false advertising and it’s left a bad taste in my mouth.

 

[fishyjoe]

@sicky12 It is. Infact, it sounds like a bait and switch.
They baited you with a lower interest rate and then switched you to a higher rate.

 

[sicky12]

@fishyjoe Exactly how I feel!

 

[intotheforge]

@sicky12 No, they all do this.

The mentioned APR is usually for 10k plus loans while there’s a higher APR for < 10k. (Roughly speaking)

 

[asurfpro]

@sicky12 I went through the process for a motor insurance quote. It was more than double what I'm currently paying

 

[sicky12]

@asurfpro That’s wild! I wonder if they actually get any business from it.

 

[asurfpro]

@sicky12 I was surprised at just how shit the quote was. I kept getting notifications about the launch of their brand new, great value offering so went through the steps to see what they'd quote me

 

[mj_1969]

@asurfpro Do they still require that you put a driver tracker in the car?

 

[leoriofarel]

@mj_1969 Yes they do. And you can't disable the "Smart Drive" option even if you have 10+ years NCB, because:

"We want to support novice drivers getting on the roads. Smart driving will help you drive smarter and safer by generating valuable feedback on your driving.
It also allows for additional benefits such as potential discounts at renewal that are personalised to you based on your actual driving behaviour"

I checked a 10yo €20k car. When I asked the support they said:

"A Smart driving device is required as the vehicle proposed falls outside underwriting acceptance criteria for our standard product offering."

I checked like a dozen different aged and priced cars and all of them had to have the tracker which comes with it's own issues.

 

[amatorreginae]

@leoriofarel When i got a quote, it said that smart drive was unavailable as it would not make a difference to the quote.

 

[turtlejoy]

@asurfpro And their car instance is done through AIG and requires you to have one of those boxes installed that tracks your driving. If you just go to AIG direct it’s cheaper.