Loan Help

dencole

Hi Thanks for taking the time to read this.
I have browsed through this forum hoping to find an answer, but have been unsuccessful.

I want to get a loan of £6000, I was looking at paying it back over 10 years to keep the monthly repayment costs down. I'm looking to pay back about £80 - £90 per month. What is the cheapest way to get a loan?
I have a barclay card that i can use up to £8.5k. I have tried understanding the jargon on this site but need it explained in simple terms please.

Many thanks.

Beast

Given that you want to pay back the amount over a long period, credit cards are unlikely to be suitable due to the short term of their low rate promotions.

A personal loan from your bank is likely to be the lowest cost option for this type of borrowing. They'll consider your previous credit history, how much you earn, and any existing debts or financial commitments when considering the application.

dencole

Thanks Beast, for your help. I have been in contact with my bank and they said that its possible that I would be paying about 13.9%apr and that I would have to go in to the bank to apply. Does 13.9 apr seem about right? is that the lowest I could get to? BTW my credit rating is probably crap as I have no current loans, have never been late with mortgage or any other payments etc. How comes we get penalised for being able to take good care of our financies when it comes to loans.

Beast

The rate isn't the best in the world, but it's far from the worst and certainly lower than you would get on a credit card.

Beast

Oh and just to give you some perspective, you'll pay back over £11,000 in total by the end of the loan period.

dencole

That's a lot of cash i'll be giving away to my bank.

Thanks beast for your info.