Opinions on loan option.

shandy1

Well he'll be thinking it over in the next few days and I've told him to make sure he wouldn't need it for anything else. Job wise, he's in a growing industry where demand is high and is due to start a new job next week after being 'headhunted' so to speak.

I personally would rather go to a bank, but really don't think I would get a good deal. The only option would to be with Lloyds where they have offered me a rate of 24.9% I would be paying back nearly a grand extra, although a member of staff at lloyds did say after a certain time I can assess the loan, the APR may drop, or I can pay more in to it when i like to drop the interest rate, is this true??? Sounded a bit fishy to me at the time.

I would show him my credit file if he wished, I have already told him about my missed payments.

paddyrg

Did you look at zopa/ratesetter? There's a reason I suggested them over going to your bank ;-) And your friend could also lend there to improve his interest.

shandy1

Hi, I had a quick browse earlier, and I've signed up for the forum. Not entirely sure how it works though or where to post (Zopa)
Do you just go on the borrowing bit and state what you would like and then the experts tell you if you have a chance?

dancingfairy

Have you got a local credit union? they may be able to help you.
df

shandy1

After a quick search, there is one close to me. It's capital credit union in Edinburgh. What's the benefit, difference to going with these than a bank etc?
I've done a Zopa application. I'm at the stage now where I'm in a queue for 30 minutes till the quote expires. The rate is 9.76% plus the £130 zopa fee. Seems good, But I take it once I confirm, I still don't necessarily know If anyone will lend me it?

barbarawright

Have a look at the thread at the topic of this board on lending to friends/family. Is there anyone who says 'Well, I lent my chum, who could get credit anywhere else, a large sum and he paid it back with no problems and we're still best mates'? Thought not.

shandy1

barbarawright wrote: »

Have a look at the thread at the topic of this board on lending to friends/family. Is there anyone who says 'Well, I lent my chum, who could get credit anywhere else, a large sum and he paid it back with no problems and we're still best mates'? Thought not.

I appreciate your comment, but every situation is different and I'm merely asking for advice on it AND other idea's, hence, why I'm looking down the Zopa route.
I'm not begging my friend for a loan nor am I in a financial crisis. He's offered to lend me the money.

ViolaLass

barbarawright wrote: »

Have a look at the thread at the topic of this board on lending to friends/family. Is there anyone who says 'Well, I lent my chum, who could get credit anywhere else, a large sum and he paid it back with no problems and we're still best mates'? Thought not.

That's because people tend to come here with problems, not situations that have been fine.

As I stated earlier, I've done it, I'm doing it and I've had no problems.

Still, if Zopa will lend you the money at 9.76% I don't know why you're not biting their hand off.

shandy1

Well Zopa is my number 1 choice now, Its only a bit more than what my mate was willing to lend and it would take the pressure off the money between us!
I'll sit down and consider all options and then prob apply for the loan!!

jamesd

If you do go with Zopa best to wait until 6 April. Repayments on existing loans are concentrated in the first few days of the month and that produces lower borrowing rates just after the money comes in. Worst time to borrow is usually just before the end of the month.

Zopa will tell you an APR for 36 months. Because of the fee the APR goes up if you repay in 24-30 months. It's still not to bad a deal, just higher rate than it seems when you plan to repay early.

There's probably a cheaper option for you, though. Virgin/MBNA do credit card balance transfers from a current account for 4% fee and 0% interest rate for around 1.5 years. Transferring a balance from a current account means paying money into the current account. Repeat with a balance transfer for whatever''s left after the first deal ends. See the cheap credit card loans article.

If you can get a loan from Zopa you also have a good chance from any of the major loan providers. Being accepted by Zopa is a good indication that you're going to be widely accepted because Zopa only accepts good candidates. Getting a quote doesn't mean you'll be accepted, though - there's a high decline rate.