Hsbc Loan

claire8608

Hi this is first time i have posted anything on this forum so i hope i have done this right.

I have a loan with hsbc, im young so the apr on my loan was quite high at the time, i got accepted for the loan before the credit crunch, the period of my loan is 24 months and in april i have paid 12 months of payments. The loan was for a car that i have purchased. I was wondering if i could transfer the loan to another one that has a lower apr, due to the way the ecomony is at the moment i would like this loan to be paid of sooner the better, as i havnt got payment protection on it. I was wondering what options i have available, would it be possible to transfer the loan, as my credit history isnt great.. this isnt due to always being late with paying things and have credit card, i think its due to applying for loans/credit cards and being declined due to my age and still living at home with my parents, so i havnt got many direct debits set up from my account.

at the moment i have about 3500 outstanding on my loan, i think the apr when i set the loan up was between 16 and 19%.

Id appeciated of somebody could give me a bit of advice regarding my loan.

Regards

theblindman

why not apply for a virgin 0% deal and transfer the cash to your account and pay off the loan, you will have to ask HSBC for a settlement figure first and you will pay 3% to Virgin for the transfer but will be about 15% less interest to pay as long as you pay it off before the end of the term

Rafter

claire,

If you have lots of searches then moving the debt might be an option. Some lenders won't touch people under 25 either so that might be a problem for you.

You have about £300 in interest left to pay on your loan. Even if you got it down to 10%, best buy for that kind of sum you would save about £100 or maybe less if HSBC charge you some kind of redemption penalty.

Might be worth getting hold of your credit report from experian to check everything is ok.

Personal view is not to bother trying to switch but just make sure you shop around next time.

Be very cautious about payment protection insurance too - you can often get the same cover for a lot less by shopping around - you don't have to buy it from the company that sold you the loan.

R.

claire8608

Hi, thank you for replying to my post. Well i already have a credit card with virgin and they reduced my limit once i applied for my loan. So that isn’t really an option atm. and tbh with my age I don’t think they would let me have more than a £1000 on a credit card, my loan is up next April so probs best to stay with HSBC and if I need to borrow money again I will try and get a better APR, due to my age and not having much of a credit history the APR with most banks was quite high and HSBC was the cheapest compared with Alliance and Leicester.

I was wondering if I pay all my loan repayments on time if I applied for another loan once this is paid off would I still have to pay a high interest rate due to my age?

I remember when I applied for my loan with HSBC they i wasn’t very keen on having the payment protection as it seems to be very expensive, I think it was an extra £30 - £40 per month and as my loan is around £250 per month, I didn’t think this was an option to have the payment protection on top. They seem to really push you to have the payment protection. Thanks for your suggestion in future I would have a look at some other options to see if I should have payment protection. Do you have any suggestions for good one?

Have you heard of any reasons why a bank would not pay out on your payment protection i.e. due to only just setting up the policy and then losing or job or becoming ill, or is it seen as soon as a payment has been made a claim can be made, this was one thing that put me of spending £40 per month and not being certain that they would accept a claim for if I needed to make one with hsbc.

Thank you all again for your help any other suggestions would be great.

Cheers

Claire