Paying off debts and buying a car with a loan

KrisKutz

Hi

I am considering getting a loan to pay off my credit card debts and buying a £2400 car privately.
I have got £1000 on Capital One and £1800 on Barclaycard, I'm repaying about £200 a month, but I've only been able to make minimum repayments. I'm self employed and haven't got a good credit rating.

I'm looking for recommendations or any helpful ideas.
Thank you. :hello:

CHR15

With a Poor credit rating you will only (if you are lucky) get a loan with a poor APR.

Have you worked out how you will pay back a £5,200 loan with a poor APR if you can only meet minimum payments now??

CLAPTON

what are the APRs on the two CCs? ..

what do you mean you are only paying the minimum amounts but you are paying 200 monthly... surely 200 is much more than the minimum payments?

try you own bank to see what they will offer .. they should know something about you
....its not possible to recommend anything until we know the details of the APRs and the minimum payments and how much you can afford to repay each month.

and bear in mind if you are self employed you must ensure you can meet the repayments each and every month.

mrposhman

Like Clapton I can't quite make out how your paying the minimum payments but spending £200. A normal credit card will ask for about 2.5% of the balance as a minimum and on £2800 thats £70.

Have you tried your own bank? If you've been with them a while and managed your account well you may be pre-approved for a loan. Be aware though that even though you may only want £5200, you will get a better rate on a loan of at least £7500. If you do this though DON'T SPEND IT, put it in an account you don't touch for 1 or 2 months and then pay a lump sum on your loan. Make sure you can do this or at the very least check if you can overpay.

I have a loan from Nationwide at 8.9% (got it last week) for £7500 and thats monthly repayments of £156 for 5 years. I also have a loan with Natwest (2 loans!! ahhhhhhhhhhh) for £10k at 7.9% and this is £201 per month so both cover the £200 you say you pay so if you can get a loan get one.

When you overpay / make lump sums the bank will not reduce your payments but they will reduce the length of time your loan is over. If you are happy with the payments leave as is, otherwise you can probably renegotiate in a years time.

I would check with your bank first and if not try someone who you have used for credit in the past as long as you haven't missed payments etc as they will use their own credit rating for you rather than relying solely on the credit reports from Experian etc.