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  • FIRST POST
    • myaramaz
    • By myaramaz 10th Oct 16, 10:18 AM
    • 2Posts
    • 1Thanks
    myaramaz
    Is this loan a good offer?
    • #1
    • 10th Oct 16, 10:18 AM
    Is this loan a good offer? 10th Oct 16 at 10:18 AM
    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)
Page 1
    • zx81
    • By zx81 10th Oct 16, 10:21 AM
    • 9,361 Posts
    • 9,203 Thanks
    zx81
    • #2
    • 10th Oct 16, 10:21 AM
    • #2
    • 10th Oct 16, 10:21 AM
    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.
    • Pixie5740
    • By Pixie5740 10th Oct 16, 10:39 AM
    • 8,861 Posts
    • 11,881 Thanks
    Pixie5740
    • #3
    • 10th Oct 16, 10:39 AM
    • #3
    • 10th Oct 16, 10:39 AM
    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%).
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • Gaz83
    • By Gaz83 10th Oct 16, 10:57 AM
    • 3,358 Posts
    • 6,349 Thanks
    Gaz83
    • #4
    • 10th Oct 16, 10:57 AM
    • #4
    • 10th Oct 16, 10:57 AM
    "Good" is an entirely subjective term. What might be good for someone else might not be good for you.
    We’ve had to remove your signature. Please check the Forum Rules if you’re unsure why it’s been removed and, if still unsure, email forumteam@moneysavingexpert.com
    • redux
    • By redux 10th Oct 16, 11:07 AM
    • 15,569 Posts
    • 18,364 Thanks
    redux
    • #5
    • 10th Oct 16, 11:07 AM
    • #5
    • 10th Oct 16, 11:07 AM
    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.
    • PeacefulWaters
    • By PeacefulWaters 10th Oct 16, 12:28 PM
    • 5,066 Posts
    • 6,090 Thanks
    PeacefulWaters
    • #6
    • 10th Oct 16, 12:28 PM
    • #6
    • 10th Oct 16, 12:28 PM
    What's the loan for?
    • muhandis
    • By muhandis 10th Oct 16, 1:31 PM
    • 222 Posts
    • 82 Thanks
    muhandis
    • #7
    • 10th Oct 16, 1:31 PM
    • #7
    • 10th Oct 16, 1:31 PM
    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)
    Originally posted by myaramaz
    • jonesMUFCforever
    • By jonesMUFCforever 10th Oct 16, 6:45 PM
    • 23,190 Posts
    • 10,539 Thanks
    jonesMUFCforever
    • #8
    • 10th Oct 16, 6:45 PM
    • #8
    • 10th Oct 16, 6:45 PM
    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.
    What goes around - comes around
    give lots and you will always receive lots
    • foxy-stoat
    • By foxy-stoat 12th Oct 16, 8:17 PM
    • 1,175 Posts
    • 650 Thanks
    foxy-stoat
    • #9
    • 12th Oct 16, 8:17 PM
    • #9
    • 12th Oct 16, 8:17 PM
    I think it's a good rate.
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