Nationwide Loan to Pay Debts - Advice Req'd

kgrant

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redpete

Why get a £7500 loan when you only want £3500?

Why add to the loan to put some of the money into a savings account that will earn less interest than you will pay?

Why not ask Nationwide if you can pay a loan off early and hence save interest?

Chances of getting a loan will depend on several things (income, available credit, actual debt, missed payments, time at current address and on electoral roll...). Can't see that you could affect any of these this week.

Tixy

To add to redpete's points - I'd also add in why pay off a card that's currently at 0% with a loan that's going to be at least 7.2%?

As you are in your overdraft most of every month this usually counts against you. So I doubt you'd get the headline rate of 7.2% anyway from nationwide.

Nationwide will probably charge you a penalty for paying off the £4k lump sum.

How much is your monthly loan repayment going to be anyway? how long were you thinking of taking the loan over? If its was say 3 years and you did happen to get the APR of 7.2% that would be £232 a month. If you have that available then you could afford to pay more off your debts existing debts.

I think you are overcomplicating your financial situation. Instead of considering this loan I would instead look at going over to the debt free wannabe section of the board, posting up a statement of affairs and get some advice on where you could save money so you can pay more off your existing debts and some advice on budgeting.

kgrant

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Tixy

An application is never certain until you have applied, they've done the check of your credit file and its been confirmed that you have the loan.
Have you actually got copies of your credit files from the credit reference agencies?

You are no more likely to be accepted for a loan online than in branch. Same criteria etc.
Another bank could be more likely to accept you, could be less. It depends on their specific criteria, target customer etc.

Did you just pay off your credit cards or pay them off and close the accounts down? if you didn't close them down then you will still have that available credit and that will be factored into any affordability calculation any bank would do.

Dabooka

As Tixy said, plus your account will show up as being in your o/d for month after moneth after month; you can't seriously expect after just a couple of weeks of being in the black they'd ignore the fact you typically live in the red?

Leave it a while, ask for less and expect a greater apr. All after you've followed the advice above and considered cancelling / reducing your available lines of credit.

Good luck

somethingcorporate

I cannot believe that you want to change a small, low - no interest bearing debt with a large high interest bank loan.

It sounds to me like you are going to start on a debt spiral very quickly.

Did you not factor into the equation that at the end of the 0% rate on your current card you could just tart it to another 0% card for a small fee?

7.5% loans are only for the very best squeaky clean borrowers that have excellent credit scores that comes from months and months of financial discipline - living in your overdraft doesn't make it sound like you are one of these.

Sorry if that sounds blunt but your plan sounds like it will only end badly.

kgrant

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