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  • FIRST POST
    • uconique
    • By uconique 12th May 17, 12:46 PM
    • 2Posts
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    uconique
    Current Graduate Loan - Advice needed
    • #1
    • 12th May 17, 12:46 PM
    Current Graduate Loan - Advice needed 12th May 17 at 12:46 PM
    Dear MSE Forum Members,
    Hoping you would be able to put some options to the table in regards to my current situation with the Fixed-Sum Loan Agreement.

    In May 2014, not long after graduating from university, I took a Graduate Fixed-Sum Loan for £5,000.00. I was under impression that it was a good agreement and needed the money at that time.
    Total repayment under the agreement is £6303.60 and is to be repaid in 60 monthly sums of £105.06 with the Annual Interest Rate as 9.52%(Fixed) and APR as 9.9%.
    At the moment, the sum which left to pay is £2,263.98 which is still quite a lot due to Interest Rates during these three years of repayments.

    My question is if there is any way I can go to repay the whole amount to slash the Interest rate and perhaps shift the loan to a 0% credit card? Considering that I have got a good payment history and credit score.

    Thanks,

    U.
Page 1
    • Candyapple
    • By Candyapple 12th May 17, 12:52 PM
    • 2,077 Posts
    • 1,608 Thanks
    Candyapple
    • #2
    • 12th May 17, 12:52 PM
    • #2
    • 12th May 17, 12:52 PM
    You would need a money transfer card. Check here and then apply:
    https://creditcards.moneysavingexpert.com/?money-transfers&_ga=2.166563261.286028960.1494590044-1894739122.1494583016
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
    • uconique
    • By uconique 19th May 17, 2:43 PM
    • 2 Posts
    • 0 Thanks
    uconique
    • #3
    • 19th May 17, 2:43 PM
    • #3
    • 19th May 17, 2:43 PM
    Thanks for the reply, Candyapple!

    I've looked through my loan details again and struggling to understand if I can benefit of a money transfer card? My loan has a fixed APR, therefore the sum I owe will not change.
    What can be the benefits of paying it off straight away by using a transfer card?
    Also, I want to make sure I wasn't missold PPI with this loan back in 2014. I don't have any documentation stating that insurance have been sold to me.
    • Candyapple
    • By Candyapple 19th May 17, 2:56 PM
    • 2,077 Posts
    • 1,608 Thanks
    Candyapple
    • #4
    • 19th May 17, 2:56 PM
    • #4
    • 19th May 17, 2:56 PM
    The benefits of paying it off are that you are eliminating paying the £2,263.98 in interest.

    As an example, if you applied for the Virgin card which is 36 months at 0% with a 2.9% fee, assuming your credit limit is large enough, you would initially have to pay £182 for the fee based on transferring £6.3k and then you have 36 months to clear your balance.

    So, choice of pay £182 vs £2,263.98.

    Now you could either pay a fixed sum of £175 per month knowing that by the end of the term the balance would be gone, or you could just pay the 1% minimum every month which would be £63 every month until the end of the term and then clear the end balance with a lump sum of whatever is left - or just move the balance to a new 0% card.

    https://uk.virginmoney.com/virgin/credit-cards/money-transfer-cards/
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
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