9.5% personalized cash loan.

tom9112

Hi,

A bank (lloyds tsb) just offered me a 9.5% cash loan of £7500 to pay back in 4 years.

Its my first loan and so I have no experience on the subject what so ever, most of the people I know claims that 9.5% is very cheap but I would rather ask here:

What do you think ?


regards,

Tom.

Additional info:
(table from first page of a agreement - not signed yet):

Loan amount - £7,500k
Monthly Repayment - £187.18
Number of repayments - 48
Total amount payable - £8,984.64
Length of loan - 48 months
Annual Interest rate - 9.15% (fixed)
APR - 9.5%

somethingcorporate

Not enough information about your credit history, income, current credit commitments etc to comment accurately.

9.5% sounds high compared to the best rate on the loans tab (at the top) which is 6.3% for £7.5k but you would have to have an unblemished, outstanding credit record to get this rate.

A bit more info and we could give a more accurate answer. Is this your current bank? They would likely have the best understanding of your financial reliability and perhaps make you a lower rate.

LovelyLeeds

tom9112 wrote: »

(table from first page of a agreement - not signed yet):

Don't sign it until you have read ALL pages of the agreement and only then - when you actually understand all of theT&Cs - get a relative/friend to read it through too.

Curr946

my 14k loan is 6.25% but i did take it out over a year ago. Given that some loans are now as high as 21% 9.5% seems rather competitive

paddyrg

First ever loan sounds like you have little credit history, under 10% for a lower amount over a shorter period sounds like you have a pretty decent deal to me. Pay this off all on time etc and you will probably find yourself offered even lower rates in the future.

But if there is any way you can muddle by without a loan, I urge you to consider that first - being £200/month short in your pay will pinch and may force you into further borrowing (at worse rates) if you have unexpected breakdown or other bills or costs come in.

CLAPTON

paying £1,494.64 more for a product than it's worth doesn't seem cheap to me even if the Jones think that's a price worth paying

somethingcorporate

Curr946 wrote: »

my 14k loan is 6.25% but i did take it out over a year ago. Given that some loans are now as high as 21% 9.5% seems rather competitive

That's a fools logic. Have you not seen the overdraft that is charged at 800,000%? using that a loan at 500% APR seems rather competitive!

You should gauge competitiveness by looking at the best, not the worst! Which is exactly what I alluded to in my first post.

tom9112

So, yeah I've no credit history and no OFFICAL income, but I'm rated good for my risk level therefore bank has offered me this credit and they said that its good point to start making my credit history.

I'm also only 20, and I've an idea of how invest money, I took into consideration that if I will pay 1400 extra, but the value of money decreases too...

Apples2

tom9112 wrote: »

I've an idea of how invest money,

I hope it doesn't involve putting loan money into a Savings Account... we had one of those earlier this week.

CLAPTON

tom9112 wrote: »

So, yeah I've no credit history and no OFFICAL income, but I'm rated good for my risk level therefore bank has offered me this credit and they said that its good point to start making my credit history.

I'm also only 20, and I've an idea of how invest money, I took into consideration that if I will pay 1400 extra, but the value of money decreases too...

this really doesn't make any sense so it's impossible to add any meaningful comments

BoGoF

No credit rating, and 'no official income'.....I smell something unpleasant