New Loan Application

djsnakehipschris

Hi all,

I currently have a loan with an interest rate of 13.1% and about 10k to pay. I also have 2 credit cards, one with about 3k at 0% and one with about 1k on, all perfectly manageable and reducing all the time.

My credit rating according to the CRAs if fairly good, come march I will have no searches, no missed payments, electoral role history of 3 years (I move around a bit as I rent), and everything else perfectly in order. I earn 28k.

My question is, what is the likelihood of me getting a cheaper loan that I can pay off quicker? I hate paying 13% when the best rates are much lower. There's a possibility I could 'transfer' my CC debt to a friend so that it appears I am much lower in debt, would that help? Are there any other tips that people could advise? I read somewhere that when you apply for debt consolidation loans they automatically rule you out of the best rates. Should I just need to suck up the fact that I have this loan and after clearing my CC debt snowball the payments? What are anyone elses experiences when trying to do this?

Many thanks,

Chris

Tixy

Unlikely to get a further loan based on your existing borrowing and income.
Huge risk in moving your CC debts to a friend - what if your card provider then reduces your limit down or you cannot get another card to move it back to? Your friend would be stuck with the debt in their name.
And even if you only looked like you had £10k debts you would likely still struggle to get a further loan based on the bank's perceptions of your affordability.

I don't know that saying the loan is for consolidation would be a reason to change the rate you would get. Its just that usually people who want to consolidate are not prime people for banks to lend to so probably don't get the best rates on the market.