7500 over 3 yrs? any help?

highlighter

Hi MSE's someone i know wants to borrow £7500 and repay it over 3 years. Now, i dont know much about loadns and APR's and what to look for in the T&C's. I have looked at the recent link from Martin with regards to the Barclays loan, the apr seems to be 5.7. Ive also seen a loan on Lombard direct website, the rate is 5.9. The Barclays is better just wondered if anyone could add anything like pitfalls? hidden fees? etc also is barclays the BEST? any input would be appreciated!
Cheers

Rafter

I think the Barclays one is top of the best buy tables at the moment for this amount.

There are early repayment fees on most loans now equivalent to 1 months interest. Notable exceptions are things like cahoots flexible loan, but I think the interest rate is higher.

You might have a better chance of being accepted if you opt for payment protection insurance when you apply, then just cancel it during the cooling off period but keep the loan.

Another suggestion would be to apply for a texaco credit card. They are offering a 3.9% for life balance transfer deal. If you get a reasonable credit limit that might help get your rate even lower.

Finally you could also try the 0% shuffle, putting some of your 'loan' onto a zero % credit card and then moving the balance to another 0% offer at the end of the promotional period.

To do a balance transfer from a credit card to your current account (if that is where you need the money) you need to do a 'super balance transfer'. That is a balance transfer from a card to a current account. The best card for doing this is an Egg Card because the transfer is always free.

Step by step instructions:

1) Apply for Egg Card and Texaco Card and see what limits you get.

2) Transfer max texaco credit limit to Egg.

3) Transfer Texaco limit and egg limit to current account (hopefully the £7500 you need)

4) Set up direct debit to pay at least minimum balance on both accounts.

5) In ~7 months time when Egg offer expires, apply for another card and transfer Balance on egg card to new offer.



If you can't be bothered with the above.....

Apply for the Barclays or Lombard offer.

Good luck..

R.

highlighter

That's great info Rafter. Thanks very much for taking the time out to help. Cheers

skye

northern rock also do 5.7% and £7500 over 3 years without payment protection is £226.78 per month (not sure about redemption fees - you would have to check the small print)

fatboyonadiet

Went for a loan myself, but now in the process of getting a Life of Balance Transfer to end up somewhere between 1.9 - 3.9% depending on what I'm offered. Then when I get to the end of the load might try the 0% shuffle.