Main site > MoneySavingExpert.com Forums > Essential Money > Loans > Best Way To Borrow 5000 Over 5 Years....... (Page 1)

IMPORTANT! This is MoneySavingExpert's open forum - anyone can post

Please exercise caution & report any spam, illegal, offensive, racist, libellous post to forumteam@moneysavingexpert.com

  • Be nice to all MoneySavers
  • All the best tips go in the MoneySavingExpert weekly email

    Plus all the new guides, deals & loopholes

  • No spam/referral links
or Login with Facebook
Best Way To Borrow 5000 Over 5 Years.......
Closed Thread
Views: 7,335
Thread Tools Search this Thread Display Modes
# 1
Beardy
Old 20-11-2008, 10:44 PM
MoneySaving Newbie
 
Join Date: Nov 2008
Posts: 3
Default Best Way To Borrow 5000 Over 5 Years.......

I am after some advice, i have never had credit cards in the past so do not really know what things mean or what to look for.
In the past i have always gone with the bank but looking for a better option.

I am looking to borrow 5000 over 5 years

What would be the best way of doing this?
Credit card or Loan?

I have been offered a deal threw Black Horse Finance which is the following -
5000 (well 4795 as i am paying a Deposit) over 5 years they say its on 9%
122pcm x 60 months = total repayment 7320

Now i am 100% sure there will be a better deal out there for me its just knowing which to go for.

I have good credit history etc

I know this is the place to get free advice which isent trying to sell me a product

Thanks in advance

Beardy is offline
Report Post
# 2
CLAPTON
Old 20-11-2008, 11:20 PM
Deliciously Dedicated Diehard MoneySaving Devotee
 
Join Date: Mar 2006
Posts: 30,476
Default

4795 over 60 months at 122 per month is about 20% APR (presumably you have bought a car... they just love to quote the 'flat' insurance rate )

so if you have a good credit rating then get a much cheaper deal or even better, reconsider the purchase and save up instead.
CLAPTON is offline
Report Post
# 3
Beardy
Old 20-11-2008, 11:36 PM
MoneySaving Newbie
 
Join Date: Nov 2008
Posts: 3
Default

I am looking at buying a Motorbike and the prices are really good at the moment.
So what would anyone say to go for then?
If you saying its 20% APR (sorry i have no idea how this is worked out) then ANY credit card would be a better deal?
Like the CitiBank Card which says 5.9% APR when Borrow 5,000 over
6 years

???
Beardy is offline
Report Post
# 4
CLAPTON
Old 20-11-2008, 11:51 PM
Deliciously Dedicated Diehard MoneySaving Devotee
 
Join Date: Mar 2006
Posts: 30,476
Default

Prices will be much much better in 6 months time... buy something for 500-1000 now and save up for later
CLAPTON is offline
Report Post
# 5
moneysavingallday
Old 21-11-2008, 1:01 AM
PPR
MoneySaving Stalwart
 
Join Date: Nov 2008
Posts: 604
Default

Quote:
Originally Posted by Beardy View Post
I am looking at buying a Motorbike and the prices are really good at the moment.
So what would anyone say to go for then?
If you saying its 20% APR (sorry i have no idea how this is worked out) then ANY credit card would be a better deal?
Like the CitiBank Card which says 5.9% APR when Borrow 5,000 over
6 years

???
If you've never had credit cards, what makes you think you'll miraculously be offered one with a 5,000 limit now?
moneysavingallday is offline
Report Post
# 6
Beardy
Old 21-11-2008, 8:39 AM
MoneySaving Newbie
 
Join Date: Nov 2008
Posts: 3
Default

Quote:
Originally Posted by moneysavingallday View Post
If you've never had credit cards, what makes you think you'll miraculously be offered one with a 5,000 limit now?

No idea mate
Like i said i have never had a credit card so do not know how it works i thought you could ask for your limit?
If you can only get a small ammount how do people get in debt by thousands with cards?
So if i can not get 5k on a card right off then i need to look into loans?

Any other advice?
I am 28 been working for 12 years good credit etc

Beardy is offline
Report Post
# 7
Any
Old 21-11-2008, 8:55 AM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Aug 2008
Location: Manchester
Posts: 7,409
Default

Hi Beardy,
No, I am affraid it doesn't work like that. You get very little credit from the beginning, after SHOWING YOU CAN REPAY AND MANAGE YOUR MONEY your credit limits increase. Many people get into thousands pounds of debts because a/they suddenly go mad and get that shopping illness (buy everything you see) b/get into difficult life situation.

I would go on www.moneysupermarket.com/loans and see what is there in a way of bank loans. If your credit rating is that good as you think (did you ever had a loan, phone contract or anything else??) you will be able to get REAL 9% APR... Have a look at that site and that would also show you how much would you be paying in interest...
Any is online now
Report Post
# 8
CLAPTON
Old 21-11-2008, 8:58 AM
Deliciously Dedicated Diehard MoneySaving Devotee
 
Join Date: Mar 2006
Posts: 30,476
Default

I think you are unwise to get into debt when its not necessary and 5k for a bike is a want not a need and the fact that you are choosing to pay over 5 years tends to indicate that you dont have much money or you spend it unwisely.
You will end up paying a considerable amount of interest.


If you can afford the repayments of 122 then why haven't you been saving this spare cash each month.

However it may be useful for you to know how things work:
- lenders (like loan providers or CC companies) like to see a history of similar lending so that they can see you repay your loans/CCs regularly and ontime.
This shows up on your credit records.

-if you have never had a CC then there will be no history on your file either good or bad.... therefore most will therefore only give you a small limit (500 or 1000) and a APR around 25-35%.

-obviously you are on the electoral roll

Your best bet is to ask your bank because they will see your wage being paid in each month and know you handle your affairs well.
A loan is likely to be cheaper than a CC.

To get a feel for what various loans will cost you try out this loan calculator
http://www.moneyfacts.co.uk/calculat...repayment.aspx
Try a few figure and write them down so you will not be conned by the 'flat rate' merchents with their misleading figures.
CLAPTON is offline
Report Post
Closed Thread

Bookmarks
 
 




Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

 Forum Jump  

Contact Us - MoneySavingExpert.com - Archive - Privacy Statement - Top

Powered by vBulletin® Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.

All times are GMT +1. The time now is 8:15 PM.

 Forum Jump  

Free MoneySaving Email

Top deals: Week of 27 August 2014

Get all this & more in MoneySavingExpert's weekly email full of guides, vouchers and Deals

GET THIS FREE WEEKLY EMAIL Full of deals, guides & it's spam free

Latest News & Blogs

Martin's Twitter Feed

profile

Cheap Travel Money

Find the best online rate for holiday cash with MSE's TravelMoneyMax.

Find the best online rate for your holiday cash with MoneySavingExpert's TravelMoneyMax.

TuneChecker Top Albums

  • ARIANA GRANDEMY EVERYTHING (DELUXE)
  • ED SHEERANX (DELUXE EDITION)
  • VARIOUS ARTISTSNOW THAT'S WHAT I CALL MUSIC! 88

MSE's Twitter Feed

profile
Always remember anyone can post on the MSE forums, so it can be very different from our opinion.
We use Skimlinks and other affiliated links in some of our boards, for some of our users.