Moving loan around

donnacraig1984

Hi folks after some advice regarding a loan my partner has, got a loan with Lloyds, fairly high interest rate. She would like to switch it, to a lower rate. she has just settled a car finance agreement, do you think she should wait a while before applying to tesco or the like. Let the car finance show as settled, her credit file is perfect no blemishes. Shes had the lloyds loan for 13 months now, its sitting at £9000 and she has a credit card with £3000 balance. All info would be much appreciated Thanks.

chalkie99

What is the current interest rate?

If she applies for a new loan she will not, necessarily, get offered anything like the rates advertised and, in fact, may not get a loan at all as the new lender will not see it as "switching" but as extra credit on top of an existing loan - they have no guarantee she will pay off the old loan as she could just as easily blow it on new purchases.

If she has £12k owing at the moment an is looking at borrowing another £12k then she will need around £1,000 a week income to have much chance of doing this.

CLAPTON

what does she earn?
what are the APRs of the two debts
does she use her overdraft

jonesMUFCforever

First thing I would do is ask Lloyds what rate they would offer to consolidate.
It will cost you nothing to ask and they well offer a better rate to retain the business.

donnacraig1984

Thanks for the feedback, Partner earns £18500 pa. Loan rate is 24.4% 6years left to run, CC is 11.9. both with lloyds. So you reckon she may be best going back to lloyds and find out what they could do? She has an overdraft available but never uses it.

Thanks

jonesMUFCforever

:rotfl:

donnacraig1984 wrote: »

Thanks for the feedback, Partner earns £18500 pa. Loan rate is 24.4% 6years left to run, CC is 11.9. both with lloyds. So you reckon she may be best going back to lloyds and find out what they could do? She has an overdraft available but never uses it.

Thanks

Yes!:rotfl::T:rotfl: