Nice Loans.co.uk > News > Loan Enquiries

Cheap Loan Acceptance Rates

One of the most important controls available to loan companies when deciding how to run their business, is their level of loan enquiry acceptances. Different loan companies specialise in different parts of the market and for those who decide to operate in the low interest arena of prime lending, then setting a competitive acceptance rate is key. There are a number of factors they consider, but remaining competitive is very important. At the sharp end of the low rate loan space every fraction of interest charge matters. Being just 0.1 percent more expensive than a competitor can be costly. By targetting their advertising at people who are looking for cheap loans, they need to make sure they can deliver those loans when people start to apply.

When a loan advertisement carries a typical APR, it is providing an indication of the rate at which at least 2/3rds of successful applicants will receive a loan. The important point is not the rate itself but the fact that it refers to successful applications. Some loan companies will simply reject high proportions of the enquiries they receive, just to keep their typical APR low. In fact this week Nationwide revealed that it has only accepted 40 per cent of the loan requests it received over the past year. So 60 per cent of applicants were denied their loans and forced to look elsewhere.

So just because a loan company advertises low interest charges it doesn't mean you'll get a cheap rate loan with them. If your application is accepted you may, but as you can see, the chance of that happening is reduced if you have any kind of problem, no matter how small, with your credit profile.

The advantage of working with a broker like NiceLoans is that we don't just work with one loan provider. By partnering with a number of different lenders, each of whom focuses on a certain part of the market, we can help place your enquiry with a supplier who is able to say "yes" to your request. You don't need to go around making additional enquiries everytime your loan enquiry is rejected, we do all that legwork for you.

So put yourself in the market for a loan, by working with a loan broker like NiceLoans. If a cheap rate loan is out there and you qualify for acceptance, then we'll find it for you. If your situation excludes you from the cheapest deals, don't worry, we'll search for the next best offer and put you on the road for the right loan quickly.

<<< Return to news page | Request cheap loans >>>