Loan company offering me more money..

immoral_angeluk

to extend your term.. how guaranteed is this? I have a personal loan with Black Horse finance.. and they've sent me a letter saying that I can have an extra £525 by increasing my term and my monthly payment won't change which would come in REALLY handy right now as I could clear a debt with it (and if I could get a bit extra then I could clear off 2 or 3). It also says I could get an extra £626 by upping my monthly payment by £2.43, or £726 by £4.87...

My question is, I have a not great credit rating but have never missed a payment with them, probably why they've sent me this letter but I can't call them until monday as they aren't open.. how likely am I to be accepted??

jonesMUFCforever

What interest rate are they charging and how long is the extended term?
You will probably be paying through the nose.
Better to check out other avenues of credit first before accepting.

roswell

The only reason they are offering you this is to make more money from you longer term = more interest to them. ideally if your looking at becoming Debt free you dont want loans with high APR`s.

You need to pay off high APR debts first or transfer them to lower APr`s so more of your money goes at clearing the debt.

mrcow

Sorry, I don't understand your logic?

"If I got £525 I could clear a debt with it"

But the extra £525 is a debt! and Black Horse will probably be ripping you off for it!

What's the APR?
Whats the length of loan?
What's the actual repayment verses how much you are borrowing? (Are you paying for PPI?)
What are you planning to "pay off" with this loan and how much APR are you currently paying on this existing debt?

It's a marketing ploy to make you to borrow more money. See it for what it is and do yourself a favour and work out the maths properly first.

kitster_2

talking of easy money.https://www.cash4nowt.co.uk

immoral_angeluk

What I meant was I could clear a credit card debt with it as I have a capital one card with £446 owed which is 29.9% APR which I wouldn't mind shifting! I have to call them about it to find out the finer details as obviously there'd be no point shifting a 29.9% credit card to a 29.9% loan (not sure of the APR of the loan.)

mrcow

kitster wrote:

talking of easy money.www.cash4nowt.co.uk

That's a really poor return on a "matched" bet start up. You're better off visiting the gambling boards on this site for more info if you're interested in seriously starting up this type of scheme.

(And you're probably better off signing up through Quidco rather than going through this site?)

Anyway the OP wanted advice on a loan, not matched betting :rolleyes:

mrcow

immoral_angeluk wrote:

(not sure of the APR of the loan.)

Back in the old days I took out a £1500 loan with Black Horse and was paying over 20% apr (I didn't even think to look at the rate when I signed up) so do watch them.

I think it's just a question of working out whether you'll pay the debt off more quickly (and cheaply) by keeping it on the card or transferring it to the loan. When is the loan due to finish? As it may be worth starting to "snowball" these debts to pay them off quickly.

Most people would take the extra money from Lloyds and just spend it (it sounds silly, but it's true).