Tesco Loan

MR_J_5

Hi this may be a silly question, but is it possible (or worthwhile) to take out a loan for more than I need to get a lower APR then use the difference to pay a lump sum off the loan and reduce the monthly payments?

I know Tesco have the facility to pay a lump sum on their loans and either reduce the period or monthly amount and just wondered if this was a way to get a better APR.

Tixy

It can work out cheaper. Although also applying for more could increase the risk you are declined (although obviously that depends on your finances, earnings, etc).

MR_J_5

Tixy wrote: »

It can work out cheaper. Although also applying for more could increase the risk you are declined (although obviously that depends on your finances, earnings, etc).

Thanks for the reply I think I need to see how much the monthly payment figure differs (once adjusted for the overpayment) between the two amounts and take it from there.