Quick, but competitive loans?

ichilton

Hi,

I've just bought a car, which i've provisionally arranged to collect next Friday (it's Sunday now).

I wanted to get a personal loan, as at 6% APR, it's nearly £20/month cheaper (which is over £1000 over the 5 years).

However, none of the online loan applications seem to be clear on how long it takes between applying and getting the money.

Tesco says it posts documents out which you have to sign and return before they make a decision so it looks like a 2 week process, which is too long.

Is anyone able to confirm whether any of the 6% APR loan providers do an instant decision and a quick payout?

If not, my other option is to take the finance from the dealership, collect the car, and then apply for a loan at leisure and settle the finance.

Will that have a big impact on my credit rating?

Thanks,

Ian

Hitme

The first thing to consider is that you may not be offered the 6% rate anyway. Secondly the quickest option would probably be your own bank as they possibly wouldn't need to get you to send in bank statements / pay slips etc.
Might be worth doing the 'soft search' with Nationwide to get an idea of what rate you might get and compare this to what you have already been offered.
Your less likely to get another loan or one at the best rate if you've already just taken out finance on the car, something else to consider.

ichilton

Hi,

Yes, I thought that too.

I have found out though that the finance has a 14 day cooling off period and then 30 days to pay it off if you give that.

So, I could get the finance to collect the car, and once that's gone through ok, I could attempt to get a cheaper loan and pay off the finance.

It would be 2x credit searches in quick succession, but...

Ian

KingElvis

You bank is your best chance, I use Natwest and the money was in next day when I used them for a loan last year.

ichilton

I'm with Lloyds TSB but am disappointed in them - despite having a premier account and a mortgage with them, they were over 10% APR and higher payments than the finance!

Ian

CLAPTON

ichilton wrote: »

I'm with Lloyds TSB but am disappointed in them - despite having a premier account and a mortgage with them, they were over 10% APR and higher payments than the finance!

Ian

what is the car finance offering?
are you sure it is the APR and not the usual car dealer fiddle of quoting 'flat' rate?

ichilton

Hi,

It was 9.4% APR on the finance.

He did then say the flat rate but I didn't write that down.

The monthly payments are only £16/month more on the finance than a 6% APR loan, but that's ~£1000 over the 60 months.

Ian

Apples2

Firstly be very clear between Flat Rate and APR. It makes a huge difference.

There is a risky option.....

Check on the car finance cancellation policy. Most allow you 14 days to cancel.

Apply for your bank loan whilst agreeing to the Finance package.
Take the finance whilst your loan is stumbling through the process.

As soon as your loan appears, cancel the car Finance, pay the finance company off with the loan which leaves you with just the loan.

Dealers would normally offer a lower price if taking finance due to the commision but it sounds like you already have agreed a price. It sounds like you haven't bartered the best deal if he has accepted a price without knowing if you are taking finance though.

As I say, a risky option as it all depends upon receiving the loan before the 14 days finance cancellation policy expires.....

Hitme

9.4% isn't bad. If your own bank isn't willing to better it then you might find that neither will anywhere else.