question about a loan

dings

Hi all

realise this maybe the wrong forum, but there we go.

I am about to top-up a loan with egg - yes I know that consolidation is not advisable generally, but it's the decision I've made. The reason being that I've hit some big expenses recently - honeymoon, boiler, big car service & repairs - I was managing fine until then and heading for dfw success...

My only concern is that I may be turned down. I don't know why I'm worried about this really, as affordability is no problem, and my credit file is clean. My concern is because original loan was only 6 months ago, and I'm going to top up by similar amount as I originally borrowed...

I know you may not approve of my approach, but it's the decision I've gone with. From people's past experience, what likelihood is there they may say no, or what reasons?

Cheers

Dings

savedup

Hi

I am not going to comment on your reasons for wanting a larger loan, if you feel it's the right thing for you - Fine.

Just one point to raise though - Is this loan the best deal for you in terms of the interest etc ?

In true M.S.E style -
If you have a good credit history, it may be worthwhile shopping around first, and get a consolidation loan from someone else at a better rate, if possible.
At least this will help to save some extra money on the repayments.

Regards

vics_1982

You may also have a problem in the short time you've had the loan with them for, my loan won't allow me to top up for 9 mnths from starting it, I agree with above poster, may be better and cheaper to shop around for one with cheaper interest etc.

Vics
x

dings

Thanks for the advice - and non-judgemental nature of it. New to this board, and just seeing how good it really can be - thanks.

Vics - I asked them that, and no minimum time before you can top up.

Thanks again - any other thoughts appreciated.

Thanks.

CLAPTON

you say you've decided to ask for an additional loan and dont want views as to its advisability.
then why not ask ? if they say no i dont see why you're any worse off than if you hadn't asked.

dings

Clapton - that's a fair point you make.

I earn £33k and the new loan (i understand top ups work that they settle old one, and give you (assuming you're successful) a new one of old one plus additional required) would be for £23-24k. As I said, affordability is no issue - I will be getting quite a large bonus early next year also (hit my annual target already) so can pay a decent chunk off then too. I think I'm just paranoid they'll say no (bit of a lack of personal confidence at the mo).

Given the friendly nature of this board (bunch of really nice people by the seem of things...) I guess I was just looking for reassurance based on anyone else's previous experiences...

If anyone can give this reassurance, would be welcome.

Cheers

Dings

CLAPTON

well 24,00 is about your take home annual salary and seems a pretty massive non mortgage debt..if you pay say 20% of your take home pay each month it will take about six years to repay and lots of things can happen in six years.

however that's by the by and the only way you'll know if they will offer you the loan is to ask..in reality our views won't really count for a lot in this situation.

HazelEyes_3

dings wrote:

I earn £33k and the new loan (i understand top ups work that they settle old one, and give you (assuming you're successful) a new one of old one plus additional required) would be for £23-24k.

That seems like an expensive way to take out another loan - I would suggest checking the total amount of interest you will pay this way as by settling the first loan the company will probably take a large proportion of the interest. In effect you could be paying the interest twice!

It could be worth checking the total payable if you get another loan from another provider in addition rather than instead of the current one.

And if as you say affordability isn't an issue then arranging 2 regular payments isn't more difficult than paying one.

Another thought - if you are intending to pay off most of this top up loan when you get your bonus have you considering using a credit card. This is often a cheaper option for short term borrowing.

dings

Clapton - again thanks... it's a confidence issue more than anything else I think - although again, thanks for your comments.

Hazel - that may be the case, however, that's the way they do it. Also, if I had 2 separate loans, the payments would total more than the 1 bigger loan. On your credit card comment - no space to do so simply.

dings

Hi guys

Thanks for all the comments.

Having read through many other threads on here today, there's some truly inspiring stuff... the message I guess is grasp the nettle and go for it, so I will do tomorrow.

However, if anyone else reads this overnight and can pass on any views, I'd still be grateful.

Dings

dings

Coming back to this... wondering if anyone can share their experiences in this area.

Thanks

Dings