Is this loan a good offer?
I have been accepted for my first loan by Sainsbury's bank, but the APR is significantly higher than I had expected (8.5% when I applied with 3.2% in mind). I queried this and told them that I wasn't happy, so they went away and came back with 7.5%, but it is still too much.
I haven't accepted or declined yet and was told that I have 28 days to decide, so thought I would put the question out there to others who are more experienced in such matters.
Is the following a good offer?
I haven't accepted or declined yet and was told that I have 28 days to decide, so thought I would put the question out there to others who are more experienced in such matters.
Is the following a good offer?
- £17,500
- 42 months
- 7.5% APR (when I applied, it was with/for 3.2% APR)
0
Comments
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Impossible for us to say. It's a good rate, if that's the best your circumstances will allow. If you can do better, then it's high.
Your rate will largely be determined by your income, debts, limits and credit history.0 -
No when you applied the representative APR was 3.2% and that rate is offered to 51% of successful applicants you are one of the 49%.
Only you can decide whether whatever it is you want to use the £17,500 is worth paying £2,451.57 (7.5%) in interest rather than £1,021.59 (3.2%).0 -
"Good" is an entirely subjective term. What might be good for someone else might not be good for you."Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."0
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Maybe something depends on how you are expecting to be able to pay it back.
If you've been very cautious about the time and actually hope to pay it off faster, then you'll be reducing both numbers and the difference between them in Pixie's post.
On the other hand, if it's going to be a push to only just manage, maybe you'll come to resent the extra interest by somewhere about halfway through.0 -
What's the loan for?0
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Have you used the MSE eligibility calc for loans? If yes, you should get an idea of what different lenders are willing to lend to you based on your financial profile. That should help you answer the question whether the deal from Sainsbury's is good or not in comparison to them.
https://www.moneysavingexpert.com/eligibility/loans-calculator/I have been accepted for my first loan by Sainsbury's bank, but the APR is significantly higher than I had expected (8.5% when I applied with 3.2% in mind). I queried this and told them that I wasn't happy, so they went away and came back with 7.5%, but it is still too much.
I haven't accepted or declined yet and was told that I have 28 days to decide, so thought I would put the question out there to others who are more experienced in such matters.
Is the following a good offer?- £17,500
- 42 months
- 7.5% APR (when I applied, it was with/for 3.2% APR)
0 -
I would take it IF there is no early settlement fee.
Then a few months down the line you could apply elsewhere to see if you can get a cheaper rate.0 -
I think it's a good rate.0
This discussion has been closed.
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