Personal Loans and Savings

Lancslass1982

Hi all! I am looking to apply for a personal loan for 7.5K. I'm wondering whether I would be more likely to be approved if I apply at the same bank that I hold savings. I have two savings accounts with this particular bank, with a total of 10K in them. Would it make any difference to the likelihood of them approving the loan?

Thanks for any help.:)

bengalknights

They would probably be more open to offering loan on favourable terms.

fozmcfc

The moneysaving answer is to not get a loan and pay thousands in interest but use some of your savings.

But I agree your bank is the best place to start. If you haven't had any searches on your credit file lately take a look at the loans section on the mainsite here.

http://www.moneysavingexpert.com/loans/cheap-personal-loans

If the APR the bank offers you think is high, then apply elsewhere with one of the companies having the lowest headline rate (APR) on loans of 7.5k in the loan section. Of course not everyone will be offered the headline rate.

Lancslass1982

I was turned down by Sainsburys. Is this going to prevent me from being able to get credit elsewhere?

CLAPTON

you haven't told us what your credit files say
you haven't told us your income
you haven't told us why you don't use your savings

Lancslass1982

^ I have credit cards, but have never defaulted on any payments and pay more than the minimum on them.
My income is £17000.
I don't want to use my savings as I might need a lump sum for a deposit one day and it took time to build up (although to be fair, I'm not sure why that one would be relevant).

opinions4u

Why not keep the savings and don't take the loan either?

Save up for whatever it is you're wanting to spend on.

Lancslass1982

Because my existing car is getting older and things are starting to go wrong on it, which will require repairs that may end up costing more than the car is worth. Sometimes we need to take out credit don't we. We can't always save up for everything that we need to buy.

CLAPTON

Lancslass1982 wrote: »

Because my existing car is getting older and things are starting to go wrong on it, which will require repairs that may end up costing more than the car is worth. Sometimes we need to take out credit don't we. We can't always save up for everything that we need to buy.

makes no sense


you must have some spare money each month otherwise you won't be able to make the loan repayments

so use your savings for the car and then rebuild them with the spare money that you have and would be spending repaying the loan and interest ...


plenty of great motors for 4k or less

CLAPTON

PS

how much do you owe on the CCs
and how much are the APRs on the cards?

Lancslass1982

No offence to anyone, but my actual question was whether applying to the bank where I hold savings would make any difference to a loan application. It wasn't a request for opinions on whether I should replace my car or how I should pay for the replacement. It also wasn't a request for help on anything credit card related.

Eta: I have been approved "in principle" on a loan with Derbyshire. I am waiting on the Santander application.