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  • FIRST POST
    • AliceBanned
    • By AliceBanned 25th Nov 17, 2:25 PM
    • 2,352Posts
    • 1,099Thanks
    AliceBanned
    Is this a good deal?
    • #1
    • 25th Nov 17, 2:25 PM
    Is this a good deal? 25th Nov 17 at 2:25 PM
    Hi


    I have been provisionally offered an Avanti loan - applied for £3500 - admin fee upfront is £189 then the cost is 0.70% interest - without the admin fee I believe that works out at 8.7% APR. I have a 0% credit card coming to an end in January and have £3500 balance on it. I find I am being offered better loans than credit cards and prefer them as I tend to stick to the repayments so effectively I would be transferring the credit card debt to the loan. Another loan comes to an end in January so I could afford the repayments of £304 per month (12 months repayment with option to repay early).


    I am not sure whether I should just stick with the credit card and pay it off instead?


    I have paid off £4000 on my debts in the past 1.5 years so I am now on a budget so borrowing to save me interest is a worthwhile thing. I am also hoping to get a bigger mortgage in a year or two so need to continue debt busting.
    DFW - goal December 2019

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Page 1
    • AliceBanned
    • By AliceBanned 25th Nov 17, 2:26 PM
    • 2,352 Posts
    • 1,099 Thanks
    AliceBanned
    • #2
    • 25th Nov 17, 2:26 PM
    • #2
    • 25th Nov 17, 2:26 PM
    PS I forgot to mention it is a Co-op card and the interest would be 26% after the 0% period.
    DFW - goal December 2019

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    • pappa golf
    • By pappa golf 25th Nov 17, 2:31 PM
    • 7,761 Posts
    • 8,024 Thanks
    pappa golf
    • #3
    • 25th Nov 17, 2:31 PM
    • #3
    • 25th Nov 17, 2:31 PM
    DO NOT pay an admin fee up front , any fees should be added to the loan repayment
    • AliceBanned
    • By AliceBanned 25th Nov 17, 2:38 PM
    • 2,352 Posts
    • 1,099 Thanks
    AliceBanned
    • #4
    • 25th Nov 17, 2:38 PM
    • #4
    • 25th Nov 17, 2:38 PM
    DO NOT pay an admin fee up front , any fees should be added to the loan repayment
    Originally posted by pappa golf
    Hi sorry that's what I meant - they add it to the balance of the loan. But hard then to work out the equivalent APR!
    DFW - goal December 2019

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    • cjmillsnun
    • By cjmillsnun 25th Nov 17, 4:15 PM
    • 353 Posts
    • 225 Thanks
    cjmillsnun
    • #5
    • 25th Nov 17, 4:15 PM
    • #5
    • 25th Nov 17, 4:15 PM
    It’s fine as long as you don’t rack up more debt once you’ve shuffled this over.
    • Candyapple
    • By Candyapple 27th Nov 17, 1:28 PM
    • 2,495 Posts
    • 1,863 Thanks
    Candyapple
    • #6
    • 27th Nov 17, 1:28 PM
    • #6
    • 27th Nov 17, 1:28 PM
    Low rate credit cards instead of a loan:
    https://www.uswitch.com/credit-cards/low-apr-credit-cards/

    Are you eligible for any 0% balance transfer cards with no fees?
    https://creditcards.moneysavingexpert.com/?balance-transfer
    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
    • AliceBanned
    • By AliceBanned 28th Nov 17, 7:32 PM
    • 2,352 Posts
    • 1,099 Thanks
    AliceBanned
    • #7
    • 28th Nov 17, 7:32 PM
    • #7
    • 28th Nov 17, 7:32 PM
    Thanks Candyapple. I'm not eligible for good credit card deals at the moment but I have decided to hold off on the loan and then apply for 0%card in early 2018.


    I decided the loan isn't quite right for me.
    DFW - goal December 2019

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