Loan Switching (Tarting) . . . Advice Please

Curious_3

Have been researching on MSE for some time and have always found the information useful and to the point. I have switched to 0% Balance Transfer Credit Cards but am looking to do the same thing with my Loan.

I had a reasonable Credit Score from Zopa and had no problem setting up an overdraft limit with my bank for a Budget Account and am well on the way to taking control.

Being 12 months into a Tesco Loan over 5 years, I would like to reduce payments by extending the period, whilst reducing / disposing of my Credit Card Debt.

How do I ensure that any subsequent Loan Application is viewed in the appropriate manner, ie. replacing, nut adding to existing borrowing ??

youthful

i've been curious about the same thing,when i applied for an egg loan they rang me and went through my finances with a fine tooth comb, checking exactly what debts i would be settling. i did get that loan at the internet rate of 7.9%
but in general, i think they mostly presume that you will just carry on spending rather than settling outstanding stuff.
good luck let us know how you get on.

jonesMUFCforever

Curious wrote:

Have been researching on MSE for some time and have always found the information useful and to the point. I have switched to 0% Balance Transfer Credit Cards but am looking to do the same thing with my Loan.

I had a reasonable Credit Score from Zopa and had no problem setting up an overdraft limit with my bank for a Budget Account and am well on the way to taking control.

Being 12 months into a Tesco Loan over 5 years, I would like to reduce payments by extending the period, whilst reducing / disposing of my Credit Card Debt.

How do I ensure that any subsequent Loan Application is viewed in the appropriate manner, ie. replacing, nut adding to existing borrowing ??

What is the APR and amount that you borrowed with Tesco?
Any borrrowing that you extend the period of repayment of will mean you pay more interest in the end.