Loans FAQ
Why have I been quoted a high APR?
The APR offered by lenders depends largely on your personal circumstances. Unsecured loans will usually have a relatively high APR when compared to a secured loan.
If an applicant has had problems in the past with making repayments on credit agreements, the lender may consider him/her to be a 'high risk'.
If a lender decides to offer a loan to a high risk applicant, the APR offered will in general be on the higher side.
Another type of applicant who may be considered as 'high risk' is someone who has no credit history at all - i.e. has had no, or just one or two, credit agreements in the past. As there is no credit 'track record' to base the risk assessment on, the lender will often play it safe by quoting a moderately higher APR.
