Personal Loan advice

more777

Hi all, hope your all well.

Im looking for some advice. I recently applied for a loan of £12000 with my bank, with a rate of 15.3 % over three years. I was hoping to clear all my credit cards/previous loan and overdraft plus my final car payment.

I then found out my car finance was offering a loan at a lower repayment rate, so no longer needed a loan of such a large amount. i spoke to my bank and decided to cancel the loan (within 14 days) and would then reapply.

I have done this but since then the rate i would have been offered the new loan (£8000 at 15.3%) has gone up to 18.3%.

My query is really whether I should wait and see if the rate drops again or just apply now, i am also concerned whether the fact that i applied for the £12000 is going to affect me getting another one. when i spoke to the bank the advisor seemed to think that there shouldnt be a problem with me cancelling and then repplying as i am asking for less than the original amount.

Hope this makes sence. any ideas?

Rafter

Banks chop and change rates all the time and the size of loan could be a factor - generally the larger the loan, the lower the rate - which kind of feels the wrong way round!

The issue is really what the rates are on your overdraft and credit cards. There is no point paying more interest just for the convenience of a single monthly payment.

Good luck.

R.