Nationwide Small Loan

Prompt, efficient and a good rate

Advantages: Good rate, good service, quick decision Disadvantages: A £10,000 debt becomes £12,000 in the signing of a signature I have a Cashbuilder account with Nationwide that I have had since I was about 14 and that I currently keep open mainly because I don't want to miss out on any windfall should they demutualise. As a result, when I was looking around for a £10,000 loan at the beginning of the year to buy a car. At first I applied for a Northern Rock loan because it, once again, had the best rate available, but was turned down. Probably because I had only just started in a new job. After that I applied to Nationwide over the internet and had my application accepted preliminarily via a phone call and then, fairly soon after, via a letter (which officially accepted it). So what about the technicalities? The rate is very competetive, 9.8%, payment protection is optional, and the rate is fixed for 7 years. By my calculations I could have paid the loan off at £250 a month for four years - not too bad. This would have meant that I would have paid out a total of 12 grand. In terms of efficiency, I was very impressed. Most banks are fairly difficult when it comes to giving out large, unsecured sums to people in a new job but Nationwide were great and have convinced me to look more closely at giving my custom to them - especially now they do internet banking. Obviously the fact that I was already a member was a tick against my name as far as they were concerned but even bearing this in mind the experience was surprisingly painless. The result was that, in the end I pulled out at the last minute. With the uncertainty over new car prices I didn't think that it would be particularly astute to shell out a substantial portion of my wages on a car and so didn't take up the offer.

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Easy application and quick payout

By Craig, Bournemouth

Applied for a loan online, easy application process and recieved the money four days after applying. Wasn't too impressed with the rate that they offered, it was far above the quoted 'Representative APR' but my credit rating isn't perfect and the loan was for a relatively small amount over a short period. Another good point about this loan is that if your loan period is less than 12 months there are no early repayment fees! In all a good, efficient service.

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Surprising acceptance with a poor credit rating!

By Emma, Cumbria

I've been looking for a smallish personal loan (£3k) for weeks and it's been really difficult because my credit rating is currently not good. I have no CCJs, no missed or even late payments on record, but I do have a lot of outstanding credit so my score took a beating. I was turned down by Santander and the Co-op, so had resorted to the usual dubious guarantor type loans and Ocean Finance etc. On the off-chance I did an application online with Nationwide one weekend, thinking 'well, my rating can't get any worse so why not!', and was amazed when I was accepted online. They sent me the papers, I signed, returned, and the payout arrived a few days later. Admittedly, because of my credit score, the APR offered isn't the best, but it's affordable for me and allows me to consolidate my other debts. That aside, I've been really impressed with the service and just grateful for a high street, reputable lender being willing to 'take a chance' on someone with a seemingly poor credit rating. If you think you can't get accepted by one of the big names, try Nationwide first before you resort to the brokers.

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benefits

By Ryan, Horsham

Nationwide operate a discriminatory selection policy. When I called them to enquire about a loan, they told me that the minimum income the applicant should have is £700 per month. I told them I had this income but that it came from benefits. They did not want to know. Why should it matter to them where the money comes from? This is discrimination. They do not say that income must not come from benefits in anything they have printed and I suspect it is because it is illegal.

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rubbish

By beverley, chichester

I wanted a loan of £25 000 over 5 years for home inprovements, I have 96% positive report on experian and salary of over £80 000. They would not give the loan, would not explain why and would not allow me to appeal, this from a bank I have been with for the last 25 years, so much for being the 'people's bank'. I wonder if they are giving anyone loans at the moment, no wonder this countrie's economy is stalling !

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No loyalty to long time customer

By Jason, Colchester

I work full time, pay all my bills on time, have a good credit rating, yet trying to get a loan from the building society I've been with for 25-ish years to consolidate some debt that despite the added interest, would reduce my monthly outgoings by around £150, was a pointless exercise. And the online application via the nationwide website was a bad experience due to their website crashing three times whilst trying to apply. Furthermore it took two emails and a phone call to even find out whether I'd been granted a loan or not. Not happy, and wouldn't recomend

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