Cheaper Loan or stick with old loan ?

Slayerx

I have a loan with HSBC for 5k with 16.9APR which I have two years left to run so it will be paid of Jan 2014

I owe approx £4200 and at the end of the loan I get 10% of the loan back as long as I pay over the full term of the loan.

I was wondering if it would be better to get a new loan with a better APR than continue with the loan?

Is it normal that small loans tend to have the high rates of interest?

Tixy

Is there a particular reason you think you'll get a better APR now than when you took out the original loan? Did yiu have something negative on your file that is no longer there?

Is the 10%, 10% of £5k ie £500?

If so taking that into account you might well struggle to get an APR that will work out cheaper overall.

Slayerx

Yes 10% is of the loan so £500.

Nothing has changed in my financial status but thought it was worth asking for input to see if I could maybe save me some money on the loan overall.

somethingcorporate

Would you lose that £500 if you paid it back via another loan? If so I doubt you will get a rate low enough to offset that payment!

CLAPTON

with the details supplied you still owe about 730 in interest
if you get a 500 cashback then that means you would need a loan charging less than 230 i.e. less than 6% which is unlikely

Slayerx

Thanks for the replies so it seems to make sense to stay with HSBC thanks again for the replies