two loans at once?

yoshimikarate

I need to borrow £20k for a car. I can get one £20k loan at 7.6%apr from Sainsbury's, but if I borrow say £10k their apr would be 5.9%. Tesco charge 6% for a £10k loan. So my question is - why not apply for two £10k loans at once? Anyone know why this may or may not work and whether there would be anything in their T&Cs that would prevent this, or whether it could adversely impact my credit rating? Thanks!

DevCoder

What happens if you get accepted for one but not the other?

Then you have two searches on you're record and you'd need to go back to the first acceptance to ask for an increase, which they might refuse.

Then thats 3 searches. You'd then need to re-credit score for the first acceptance which might now refuse with your new internal scoring.

A few points

1) Some people will say 20K for a car on credit is madness, given depreciation, only you can answer this truthfully
2) You say you can get one loan at 7.6% APR, have you been accepted for this in writing? Or is it just an offer? Or an online quoted rate (which 50% will fail, 40% wont get and 1% will actually achieve?)

AHAR

yoshimikarate wrote: »

if I borrow say £10k their apr would be 5.9%.

It could be 5.9%, if you're accepted at all that is.

yoshimikarate

I have been accepted for the 20k loan at 7.6%, I have that in writing, I'm just wondering that as loans between 7.5k and 15k seem to attract a lower apr rate why more people wanting to borrow more than 15k don't split the debt between lenders and therefore get a lower rate? But I guess from your answer that is something to do with the number of searches?
So do more searches = a lower rating?
thanks

DevCoder

Each lender has their own internal scoring which may or may not take into account other searches, however the majority do as multiple searches indicate that you are desperate and are applying for multiple credit lines.

DCFC79

Why a 20k loan for a car, seems daft to me

27col

Time it's paid for, you will be lucky if it is worth £10k. Add the depreciation on to the interest and you have bought one hell of an expensive car. Anyway, you don't need a £20k car, you just want one. Not quite the same thing. Before you say it, I know that it's none of my business. You do what you want.

dealer_wins

20K for a car + depreciation and interest cost of £10000+

Enjoy your expensive time at the wheel!!!

bouncydog1

Utter madness. You can't afford a £20k car as you don't have the money to pay for it.

As others have said, add in the cost of motoring, depreciation and the time it will take to pay off and what will you end up with? Something no-one else will want because it will be old!

Either buy a car that you have the cash for, or save the loan repayments for a few months and buy something with that - bet your sights will lower when you are spending your own cash!

bankhater_1965

financail suicide
and is totaly about keeping up with joneses

bankhater_1965

bouncyd!!! wrote: »

Utter madness. You can't afford a £20k car as you don't have the money to pay for it.

As others have said, add in the cost of motoring, depreciation and the time it will take to pay off and what will you end up with? Something no-one else will want because it will be old!

Either buy a car that you have the cash for, or save the loan repayments for a few months and buy something with that - bet your sights will lower when you are spending your own cash!

they dont do such utter nonsense on here , its all about loans, credit cards, overdrafts , not one thread regards to putting a few coppers away for such a purchase