IS NOW A GOOD TIME TO TAKE OUT A LOAN

nursemolly

MY CAR WILL NEED REPLACING PROBABLY IN THE NEXT YEAR. I ALSO HAVE A CREDIT CARD I WOULD LIKE TO CLEAR.
DO YOU THINK NOW IS A GOOD TIME TO TAKE OUT A LOAN EVEN THOUGH I PROBABLY WOULDN`T USE THE FUNDS UNTIL NEXT SPRING.
DO YOU THINK INTEREST RATES WILL RISE ??
ANY ADVICE GRATEFULLY RECEIVED.
CHEERS
CLAIRE

Robert_Sterling_3

Getting a new credit card at 0% BT and 0% purchase might be a better bet.
I do not think getting a car loan before you need it is a good idea.
You might be tempted to spend some of it on other items.

Martinslovechild

MY CAR WILL NEED REPLACING PROBABLY IN THE NEXT YEAR. I ALSO HAVE A CREDIT CARD I WOULD LIKE TO CLEAR.
DO YOU THINK NOW IS A GOOD TIME TO TAKE OUT A LOAN EVEN THOUGH I PROBABLY WOULDN`T USE THE FUNDS UNTIL NEXT SPRING.
DO YOU THINK INTEREST RATES WILL RISE ??
ANY ADVICE GRATEFULLY RECEIVED.
CHEERS
CLAIRE

Claire,

You could consider the Cahoot Flexible Loan which is 0% until 1st March, then 6.9% variable afterwards. You would still be required to make payments each month during the 0% period, but it would mean that you could pay off your CC straight away, effectively moving it to 0% for 3 months. The money would also be there when you come to buy your new car.

I've used Cahoot for over 3 years and have had no problems with them.

Rafter

Great idea from the love child.

Current consensus is that interest rates have peaked and will fall slightly from here but not for a year or so - but that is just projections which could be very wrong if some significant world or economic event upsets things.

Personal loan rates haven't gone up with bank of england rate rises though, so unlikely they will come down much from here.

Best way to protect yourself is to get a flexible loan without repayment penalties so you aren't saddled with a high rate or big repayment penalty if rates do fall.

Personal loan is a good way to fund a car purchase though - much better value than the car dealers offers and can only really be beaten by extending your mortgage or playing the 0% credit card shuffle.

Good luck.

R.

nursemolly

thanx. i will take a look at cahoot.

CopperPlate_2

God Help you!

They have been horrendous so far. Applied for the loan on 6 November, didn't get the credit agreement until the 19 November, sent it back same day and am STILL waiting for the money on the 27 November. Speed? NO chance!!