is it worth trying to get a better rate?

ice_babe

Me and my husband applied for 3 loans this evening to consolidate our credit cards. Applied for 7900 with Tesco, hoping for the 5.7% he was accepted but at 9.9% apr
So then tried Derbyshire building society for the 5.6% and was offered 7.9% slightly better but still to much.
Lastly tried sainsburys at 5.7% and they are sending offer in the post.

Im guessing that if the sainsburys one was accepted at 5.7% they would have said stright away.
If its higher then we wont accept it, and I guess that we prob wont be able to get a loan at the lowest rates

Tiddlywinks

You've applied for 3 loans in one evening? Did each company do a credit search?

I'd stop applying for any more and just take the lowest rate offered so far otherwise you run the risk of screwing up your file for a while with too many applications in such a short time.

YorkshireBoy

You'd better hope these are not simply 'agreements in principle', ie that they're not subject to a manual underwriter assessment/review once you've signed and returned the agreements.

If so, their final decision may be influenced by the 2 other recent searches.

ice_babe

I was thinking that if I applied for them in 1 evening then it would be to soon for the second and third to see the searches.

We applied in just my husbands name.

The 4 credit cards we have are around 2k @ 5.9% lob 1200 @ 6.9% lob
2500 6.9% lob and 4k on a halifax card made up of £800 @20.5% £600 @8.9% and £2000 @ 6.9%

So no point in taking a higher apr loan.

Tiddlywinks

ice_babe wrote: »

I was thinking that if I applied for them in 1 evening then it would be to soon for the second and third to see the searches.

But the searches will still remain on file and may make you appear risky to any future lender in the near future.

With current lending rates, even 9.9% is not dire for a personal loan.

ice_babe

We arnt planning on taking any more credit. Want to be debt free within 5 years (except mortage)

lifebeginstoday

Why apply for a loan surely a BT Card would be better or just over pay on the cards ??

DCFC79

ice_babe wrote: »

We arnt planning on taking any more credit. Want to be debt free within 5 years (except mortage)

From the banks pov you are taking on more credit and have no idea it will be used as debt consolidation.

ice_babe

Just transfered some to a barclays 0% card for 18 months So now only have £400 @ 20% and apart from £600 @ 8.9% everything is at 0% 5.9% and 6.9%. Going to overpay each month starting with the highest apr instead of taking a loan

R_P_W

Doesnt sound like you are going to get a better rate than what your cards are at now.

If I was you I would get a copy of your credit file to see what damage applying for 3 seperate loans in one day has done.

ice_babe

The loans where in my husbands name as hes the higher earner, if he doesnt take any of them then his credit shouldnt be affected should it? We are 6 months into a 2 year fix on the mortgage so as long as we wont have any problems getting a better deal in 1.5 years time we should be ok.

Just got aproved for a mbna lob at 5.9% card in my name. Only got 2.2k Limit but will be able to put the £400 20% onto it the £800 8.9% and some of the 6.9% onto it, then all our debt will be either 0% or 5.9% and 6.9%.

And plan is to overpay stating with the 6.9%. Im feeling so much better now we are facing our debt and doing something about it :beer: