How much will this loan cost me?

mikeopvc

I need to get get my hands on some cash fast and have a letter from halifax saying I have a guaranteed loan of £7k available at a rate of 21.3 APR, I could have the cash in 24 hours apparently.
I usually would just shred this but as it happens I am quite keen to take them up on this offer but only as a temporary solution.

My questions are:

Would I be tied in or would I be able to repay the loan in full in as short a time as 1 month?

How much would it cost me?

thanks

Freddie_Snowbits

Depends on what you want the loan for? If you can wait for it, I would file the letter under T, for trash

Kavanne

21.3%? :-o

mikeopvc

Freddie_Snowbits wrote: »

Depends on what you want the loan for? If you can wait for it, I would file the letter under T, for trash

It's to help with cash flow, I get paid from a large job in about 2 weeks but need to sort some payments before then.
It really would only be for less than 1 month and I wouldn't mind if it cost a few pounds but was just wondering if halifax would find some way of getting a big early repayment fee out of me or something else to that effect.

mikeopvc

ok I can take a hint, I'm being silly even thinking about taking on a loan at that rate, I notice sainsbury's are offering a better rate but I'm worried I might damage my credit score if I apply and get refused.
Any ideas of there loan application success rate.

LeeSouthEast

Well, guaranteed is guaranteed - there is that aspect. Phone them up and ask what their early repayment penalties are. If they are acceptable to you, then consider taking the loan. 21% APR is horrific, but if you don't keep it for the term (and the interest isn't front-loaded... and skip the PPI), then it might be acceptable.

CLAPTON

if you only want the loan for a month then the interest is pretty small

e.g

for 1 month interest will be 7000 x 21.3% /12 = £124
however you may well have to pay an early settlement fee of a couple of month interest

chambta

I suspect it will be between 30 & 60 days interest penalty for repayment so not a cost effective way of borrowing.

You have a credit card you can use for at least some of it? Ask your bank (Halifax too?) how much you could have on overdraft also as generally it's cheaper for short term borrowing.