Sainsburys loan

DMC75_2

Hi,

I have a 7.1% yr loan with sainsburys I owe £7100 over 7 yrs , but we recently added conservatory to house £6400 and but on credit card (sainsburys as well) . I have applied for a loan to pay off as 17.9% apr(not sure if best option or 0% credit card). But got accepted and they offered 12.9% and after bit of haggling got it down to 7.8% . Is this good ? any thoughts on whether shouyld do this or go balance transfer 0% route.

Thanks in advance

StuTheDon

A loan of 7.8% at the moment is excellent and I doubt you'll get much better.

If you can get a 0% even better, but that would depend on you having good enough credit to get a card with that amount on it.

Rafter

With 3%+ balance transfer fees and no guarentee you will be able to maintain over 7 years, I would go for it.

The only 'life of balance' credit card that beats that offer is the Barclaycard one at 6.8% but that comes with a 2.5% fee.

It isn't clear whether that rate is for like of whether it is variable either.

Good luck

R.

Edd1e

hello there! im not excellent with maths and i'm new to the confusing world of loans. I'm looking for a £5000 over 3 years and Sainsbury's (with my nectar card) are offering 7.1 or 7.9%apr, which i nearly jumped at as it meant i would pay back approx £5685 (according to credit rating) compared with approx £6225 total from my bank Lloyds. Lloyds cant seem to come lower than 14%.

My problem is that i'm worried about Sainsburys' small print and as it's all over the phone you dont get to see it until you've applied for the loan.

I want the cheapest overall repayment at a monthly cost i can afford (about £170) but i get bonuses so would be able to pay back more at times so i didnt have the loan on my mind for a full 3 years, perhaps 2-2 and a half, i know sainsburys can charge up to 58 days interest for early resettlement but didnt understand the financial jargon about overpayment some months.

Has anybody got a similar loan and can help me out and which would you advise to use?

jona26

DMC75 wrote: »

Hi,

I have a 7.1% yr loan with sainsburys I owe £7100 over 7 yrs , but we recently added conservatory to house £6400 and but on credit card (sainsburys as well) . I have applied for a loan to pay off as 17.9% apr(not sure if best option or 0% credit card). But got accepted and they offered 12.9% and after bit of haggling got it down to 7.8% . Is this good ? any thoughts on whether shouyld do this or go balance transfer 0% route.

How long would your 0% last and could you repay the balance by the end of the term?

As an existing Sainsbury's borrower you've done well - 7.8% is the lowest they will drop the rate to - you've probably spoken to an advisor who isn't doing so well on their month to date target and needs the business! As mentioned 7.8% is an excellent rate.:D