Santander giving me a loan to get rid of card?

Nick1109

Evening all,

I went into branch the other day at Santander to sort a payment out on my, Santander, credit card. After explaining to her I'd frozen the card and was just paying it off the lady behind the counter said I might be better off with a short term loan with them just to pay it off and might save some money on interest.

I explained to her I'd applied for cards last year for this purpose and got rejected on all accounts!

My question is why would Santander give me a loan over 6 months with a rate of say 10% when they are making 21% out of me on my current Santander card.

I'm asking becuase I'm vigulent that applying for too many cards and loans may have an adverse affect on my credit rating.

Thanks in advance

KiKi

Maybe she gets commission. Maybe they're just being nice.

KiKi

Nick1109

"Maybe they're just being nice. "

:rotfl:

ses6jwg

You will get declined instantly if your credit card account has frozen.

However, in other instances this is not such a daft idea esp. if you are just making the minimum payment on a card at 20% apr and a loan is more like 9%

abby1234519

BUT if you were able to get the loan, surely it would work out better, you'd have one account satisfied and if you were accepted isn't that a plus on your rating? I would say though it would only be better if you could make overpayments

KiKi

Nick1109 wrote: »

"Maybe they're just being nice. "

:rotfl:

KiKi

Nick1109

'You will get declined instantly if your credit card account has frozen'

Credit card not frozen through default. It was frozen by me when I saw they were going to up rate by 8%. It just means I closed the account and am only paying it off now.

Surely Santander will see it as a money losing situation for them and it will lead to another decline. For me it makes perfect sense to take a loan at a lower rate.

fozmcfc

You really need to say how much is owing on the card. I see the APR is 21%.

Loans which attract a low rate of say 10% are usually in excess of £5000, in most cases £7500.

You say a loan over 6 months at 10%, which indicates that you either don't owe that much or you can afford to pay much more towards the card then you already are.

For example say you owe £2000 at 21%, you are saying you would be able to pay off a £2000 loan at 10% over 6 months, well if you were to make £2000 worth of payments towards the card over 6 months, the balance left would be minimal.

There are several people around here, if they knew the exact amount owed, could work out your best options.

If your credit rating is good enough, another possible option would be applying for a 0% balance transfer card and transfering the whole lot over at 0% APR for xx amount of months (upto 17 months at the moment). You normally pay 3% as a balance transfer fee.

Nick1109

fozmcfc wrote: »

You really need to say how much is owing on the card. I see the APR is 21%.

Loans which attract a low rate of say 10% are usually in excess of £5000, in most cases £7500.

You say a loan over 6 months at 10%, which indicates that you either don't owe that much or you can afford to pay much more towards the card then you already are.

For example say you owe £2000 at 21%, you are saying you would be able to pay off a £2000 loan at 10% over 6 months, well if you were to make £2000 worth of payments towards the card over 6 months, the balance left would be minimal.

There are several people around here, if they knew the exact amount owed, could work out your best options.

If your credit rating is good enough, another possible option would be applying for a 0% balance transfer card and transfering the whole lot over at 0% APR for xx amount of months (upto 17 months at the moment). You normally pay 3% as a balance transfer fee.

Ok. Card currently has £1800 on and I want rid of it within 6 months. Interest on it is 21%. 0% balance transfers sound all well and good but always end up in being rejected.