Perosonal Loan - Rubbish 13.2% APR rate

markelock

the sums are wrong here.

on your salaries, you might as well save up and pay for a car outright.

bigstevex

with one months wages you could buy a decent car to last you while you save up a few more months to buy your self a really nice car. the second hand car market is really bad at the moment so there should be some bargains to be had

mrcow

If you're both on £70k per year then paying 13% apr on a loan of £15k is ludicrous. With that kind of income, there are much better quotes to be had out there.

What about applying for a 0% on purchases for 6 months credit card deal and then paying it all off within that period? That way, all you'll pay is the 3% credit card transaction fee (if the dealer charges at all?)

chambta

mrcow wrote: »

If you're both on £70k per year then paying 13% apr on a loan of £15k is ludicrous. With that kind of income, there are much better quotes to be had out there.

What about applying for a 0% on purchases for 6 months credit card deal and then paying it all off within that period? That way, all you'll pay is the 3% credit card transaction fee (if the dealer charges at all?)

It's never been soley down to income and certainly isn't at present.

mrcow

chambta wrote: »

It's never been soley down to income and certainly isn't at present.

I never said that it was solely down to income alone . But if you have a monthly household income of £7000 per month, you should not be considering a loan of £15k of 13% apr.

gastroboy

mrcow wrote: »

If you're both on £70k per year then paying 13% apr on a loan of £15k is ludicrous. With that kind of income, there are much better quotes to be had out there.

That's what I thought. I've checked my credit rating thing on experian and everything looks satisfactory and the details are right (although the house address is slightly different - they use flat numbers while we use floor numbers).

I think they are just screwing me because I have not been in the UK for that long. I've never had any outstanding debt (all credit card purchases are paid off at the end of the month) so I don't see what the problem is. Plus we are renting at the moment and rent is 21% of our take home so it can't be about affordability?

I will speak to the bank and ask why they are offering such a crap rate...grr

otherwise i'll just buy the car outright and defer the flat purchase 6 months (which is looking likely at the moment)

Edit: Oh, and the credit card idea is fairly good, but I still can't get that much credit! :-(

mrcow

The thing that bothers me is that you are considering tying yourselves into a loan for such a silly amount when you could finance this other ways that would be cheaper and more flexible.

I really don't think that a loan is the way to go if your credit rating is good and you have a high level of disposable income in relation to how much you want to spend.

Maybe look at how much cash upfront you can get for this transaction if you delayed it for say 30 days is a start and then plan a six month budget of how you can pay it back?

gastroboy

The main reason we are looking at the loan is that we'd like to get a car fairly soon and we are also looking to buy a flat so we are keeping our savings for the deposit/flat.

I am currently having a stand-off with this lady for a flat we like and the agent is fairly certain that she will cave in (he's on our side as he really needs the sale) in the next month at the price we are willing to pay (20% off asking and 30% off peak).

We were going to call in a family debt from my GF's brother to buy the car but he stupidly left his money in Icesave so that idea has been stalled.

I might give it another month to see what happens with the flat otherwise i'll just pay cash for the car and just delay the flat purchase another six months while we recoup our savings.