Tesco Loan - refinance question

loopy.magic

One of my loans is with Tesco, it was a 10 year loan of £25,000. I'm now in the last 3 years of this loan, never missed or been late with a payment (direct debit).

As part of a regular routine to check the total amount of debt I have, I phoned them up last week to check on a settlement figure which is now £8300 (total debt I have is £60k+). The gentleman I spoke to suggested that I could get a new loan because of my good history in repaying the existing loan.

My question is given my large amount of debt against my excellent repayment record of the Tesco loan, is a new loan with Tesco worth applying for? I know the first instinct of many people on this forum would be to say 'don take on more credit', however the extra money I get from a successful loan would eliminate a lot of the other debt and allow me to snowball extra payments to the other debt.

Thanks.

RichGold

Do you earn more than £120k?

If not that could be a significant potential hurdle to obtaining more credit. The man on the phone at Tesco is employed to try to sell their products. All he's trying to do is entice you into applying, whereby he's done his job and you'll undoubtedly be refused.

CLAPTON

without knowing the details of your debts (amounts, APRs, monthly payment amount) it's impossible to say whether or not refinancing the debts is worthwhile even if possible

loopy.magic

Dependant on whether I firstly get accepted (I accept though that this is a very long shot) and what interest rate I get charged, I've worked out that the amount of interest could be less then some of my credit cards.

I think I might not have phrased my question properly, the main thing I'd like to know is whether Tesco will simply treat my application like any other or whether my good payment history with them is worth anything positive to the credit score.

KingElvis

Blimey, Tesco do loans of 25k?

I'll have a pork pie, some Ajax and a 25k loan please.

loopy.magic

KingElvis wrote: »

Blimey, Tesco do loans of 25k?

I'll have a pork pie, some Ajax and a 25k loan please.

:rotfl: If only the loan part was as easy as popping down to the local branch

blisteringblue

You need to Snowball my friend you don't need another loan.

Similar position here but owing 43k of which 25k is low interest LOB but the remainder is hurting me now. I have 20 months left on my current Tesco loan and am counting down the months till it finishes (£197 a month) because once I can free up that for my Snowball it's when the debt really starts to reduce.

I am starting with a £130 overpayment on the highest debt (Next Card @ 26%) at the moment with everything else minimum, and that along with our first ever proper lifestyle budget (a generous one mind you) will clear everything in approx 38 months !!

Seriously DO NOT consolidate (even if they accept you?)