Advice on getting a lower rate

music2dance2

Hi all,

Ive just applied for a loan and got it. The bank approached me in the branch. I would normally just refused but as I had some credit cards I thought I may as well.

Ive recently had 0% offers on my existing cards so have been moving balances around and I have a good chunk on 6.2% for the life of the balance. So they are not in a bad state.

Anyway, now I have the loan I have a 14 day cooling off period if I want to cancel. My thoughts now are maybe I could get a better deal.

I borrowed £7500 @ 14% and have to pay back around £10,200. The thing is only need around £6500 but the £7500 worked out cheaper. Ive had a look around and I guess I could go as low as £7000 to keep the rate low but Id like to get that rate down if possible.

Also is it a good idea to apply again somewhere else so soon after this loan I have just got.

Shall I stick with what I have or go try else where?

Thanks

bargainbetty

So, you have credit debt on 0% and 6.2% deals? This loan is at 14%?

You are unlikely to get a smaller loan at a better rate than you have on the cards, to be honest. Unless all the 0% deals have ended and you can't get another low life of balance or 0% rate, I can't see how taking a higher interest debt would help you.

If I have completely misunderstood, I apologise, but I can't see what you are trying to achieve.

music2dance2

Sorry for not being clear.

What I want advice on is, is it worth me applying for another loan somewhere else to get a lower rate than the 14% loan I have now. I know it's a hard question to answer, just putting this out there.

The 0% offer on 1 card ends in June 2013 and part of the balance on that card is at 26%.

The 6.2% life is only part of the balance in the other card. The rest is at a higher normal rate. So overall to make life easier and pay the debt off I have the loan.

jonesMUFCforever

IMO You won't get a loan at a cheaper rate.
Your credit files will show the loan plus the balances on the credit cards.
A new lender cannot guarantee that you won't just spend any further borrowing instead of paying back what you owe.

music2dance2

So it's best if I cancel the current loan 1st? as i have a few days cancellation period left.

YorkshireBoy

You need to post up some figures to get the best advice for your situation. For each credit card list the...

1. Credit limit
2. Total balance
3. £x @ 0%
4. £x @ standard rate of y%
5. £x @ 6.2% LOB

...because at the moment you're providing very little detail.

A loan search will hit your credit report very hard if you're maxed out on existing facilities, so whether you should apply elsewhere will depend on the answers to the above.

However, if the people that know your finances better than anybody only offered 14% it's unlikely anyone else will better it I would have thought?

music2dance2

Here are those details

Barclaycard gold
1. Credit limit - £6700
2. Total balance £4886
3. £x @ 0% nothing on this card.
4. £x @ standard rate of 18% - I think its this amount £3243
5. £x @ 6.7% LOB - £1643

Barclaycard
1. Credit limit - £2000
2. Total balance - £1611
3. £x @ 0% £972 until Jan 2014 & £469 until may 2013
4. £x @ standard rate of 24% - £170
5. £x @ 6.7% LOB nothing on this card

I suppose I could play the credit 0% game when one expires move to the next but its not ideal.

music2dance2

Now I look at it this way the barclaycard gold isnt that bad if I can pay more on top and some how pay off my smaller card within a year.

Any advice on my situation would be grand

music2dance2

Any more advice guys? I have a couple more days before its too late to cancel my loan.

music2dance2

But if I cancel the loan and return the cash tomorrow to the bank that loan balance won't show so should show I am not just getting loans and spending it on anything instead of paying off my credit cards. Does this make sense?

tonyh66

Don't do it, consolidation never works, go to the DFW board and seek advice on there. Try and snowball the credit cards, concentrate on getting the biggest APR paid off first.