Which loan to apply for first?

RoyalSwank

Looking to buy a car and wasn't too impressed with the dealer's finance rates, so think I'll go for a personal loan to finance the majority of the purchase.
I want to borrow £10k and initially feel I have 2 options.

1. Nationwide - 7.9% Typical for Flex account holders
I have a Flex account that I use for Matched Betting so quite a bit passes through it, but it isn't my main bank account (what would they think of an account with just pure gambling transactions!!)

2. Tesco Loan - 8.1% Retention rate
I have an existing loan with Tesco. I phoned up to pay it off the other day and they said I could have a (typical) retention rate if I wanted to extend the loan. The remaining balance is c. £1.4K. If I went this route I'd only borrow c.£8.6K. If I took the NW Loan I'd pay this one off.

My question is which one I should apply for 1st?
There's not really anything in the rates, so I'd like to apply for the one I felt I was most likely to get as I'm concious of having applications on my credit record. Does anyone have any idea as to which loan I'm most likely to get or is there not really much in it?

I have a good credit rating and earn good money (though am not a home owner - live at parents officially).

Would be grateful for any advice

LeeSouthEast

Not much in the rates at all. If you're conscious of your rating, stick with Tesco. I doubt they'd run another check on you for some internal number jiggling. If you want to save the most pennies, then the other one is obviously the winner instead.

RoyalSwank

Thanks

LeeSouthEast wrote: »

I doubt they'd run another check on you for some internal number jiggling.

The guy on the phone did say that the rate was based on personal circumstances, so not sure if I'd def be more likely to get the 'good' rate at Tesco. Not sure if the same rules apply for 'retention' rates as they do for advertised 'typical' rates - i.e. % of customers given the rate (though in this case the retention rate is only 0.1% lower than advertised typical).

djwolf

Sounds similar to me. I've just bought a car for £9k but decided on a personal loan rather than finance as the APR was 2% lower and you have the ability to sell the car whenever you want. With finance you're not officially the owner until it is all paid off and there is often a high balloon payment at the end. Oh and they also load on the interest at the start but with most loans it is spread evenly over the term. Either of those companies should be fine.