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Lloyds tsb loan

MOUNTY
MOUNTY Posts: 89 Forumite
Looking again to take out a loan again with Lloyds TSB.
At present have 4k from old loan to pay off which i will pay 3k then require new loan of 10k.
Am paying interest rate of 13.9% due to CCJ (£500),
New loan rate is 19.9%.
Why so much increase?
Would it be because i would still have 1k to pay of old loan!
I have two credit cards which i have only used twice this year and paid back in full each time.
Never missed a payment on loan.
Was hoping that the rate would be reduced.

Comments

  • forgotmyname
    forgotmyname Posts: 33,059 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    How old is the CCJ?

    If its not that long ago im surprised you got approved for a loan never mind one at 19%.

    39% ... Thats whay my sister got offered 3 years after Bankruptcy.
    Censorship Reigns Supreme in Troll City...

  • MOUNTY
    MOUNTY Posts: 89 Forumite
    How old is the CCJ?

    If its not that long ago im surprised you got approved for a loan never mind one at 19%.

    39% ... Thats whay my sister got offered 3 years after Bankruptcy.
    CCJ is 5 yrs old.
    Old loan has 16 months to run, but will have only 1k balance left within the next two months which i want to pay off with new loan.
  • With a CCJ on file I'm very surprised you had a loan at such a low rate. They are obviously seeing you as a higher risk hence the increase.
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