Loans - best to go with your bank?

The_Boss

I am after a loan to pay off overdraft and credit card bills. I'm likely going for about £8k over 18-22 months.

Is there a better chance of acceptance by applying to my bank (Natwest) who I have been with for over 10 years, or would I have an equal chance of getting one with a slightly better rate from Lloyds TSB (who I have just opened an account with and I also have a Blackhorse car loan that has run for 2 and a half years with a further 18 months to go)?

Also, by only applying for a fairly small amount over a fairly short amount of time, does that lessen the chances of acceptance?

Milky_Mocha

You're a mad maverick money saving maniac and you haven't realised that the financial institutions don't care about loyalty so neither should you? By all means let them give you a quote but I'd bet you'll get a better deal from a company you've never had dealings with. You seem to be more worried about being accepted than the rate you get but FI's would do a lot to get a 'new customer' so you're at least equally likely IMO to get accepted elsewhere

I've been with Barclays for over 10 years and they didn't give a stuff when I asked for some kind of discount as their rates at the time were so much worse than everywhere else.

The_Boss

I know, but what I am referring to is which one gives the better chance of being accepted.

Better to apply for a 7% loan from your own bank and get it than a 6.4% one that you might be rejected for.

Milky_Mocha

I see what you mean. I think that depends on your credit rating. Some FI's that advertise a good rate only offer that rate to people with an excellent credit rating and give a worse rate to others. If your rating is less than very good then by all means speak to your bank first as they are likely to give you a definite answer without doing a credit check - they'd simply look at the history they've had with you.