Debt Consolidation Loan

Smoggie69

Over the weekend I applied for a £15000 loan with Sainsbury's, which has a representative rate of 5.5% and was offered an APR of 7.5%. I am looking to consolidate my credit cards and have £9770 on a credit card with an APR of 6.95% and £5030 on a credit card with a APR of 7.8%.

I have no defaults, etc. but obviously the level of debt I already have is playing a part. Is it worth applying with a different lender, as Tesco and M&S both have similar representative rates. While not guaranteed this rate, would it be worth trying to get a lower rate that 7.5%, or will this have an effect on the application to Sainsbury's? I did have a Tesco loan until earlier this year, so I'm not sure if my account still be active to apply as an existing customer.

Thanks for any help in advance.

DCFC79

Smoggie69 wrote: »

Over the weekend I applied for a £15000 loan with Sainsbury's, which has a representative rate of 5.5% and was offered an APR of 7.5%. I am looking to consolidate my credit cards and have £9770 on a credit card with an APR of 6.95% and £5030 on a credit card with a APR of 7.8%.

I have no defaults, etc. but obviously the level of debt I already have is playing a part. Is it worth applying with a different lender, as Tesco and M&S both have similar representative rates. While not guaranteed this rate, would it be worth trying to get a lower rate that 7.5%, or will this have an effect on the application to Sainsbury's? I did have a Tesco loan until earlier this year, so I'm not sure if my account still be active to apply as an existing customer.

Thanks for any help in advance.

First off is the 7.5% in the bag so to speak from Sainsburys Bank ?

If not then im not sure if applying elsewhere would jeopardise the 7.5% from Sainsburys Bank.

You tried your own bank ?

Smoggie69

I have received the forms to sign and return for Sainsbury's, so I'm not sure if they will do any further checks. I assume my application to Sainsbury's will show up on any searches done by another lender.

I haven't tried my own bank. Do you think they would be more likely to give the representative rate. Halifax are offering 6.7%, which would be less than the rates on my cards. My wife received an offer from Santander, who we also bank with, but she only works part-time, so I doubt she will get the loan.

R_P_W

the rates are on your cards are pretty good anyway - why don't you just hunker down and pay as much of them as you possibly can now.

You didnt get the representative rate from sainsburys. I guess you could argue its a coin toss with tesco.

Smoggie69

That thought is at the back of my mind as I can make fixed payments on both, although I did want to get fixed with a lower rate.

sistafromanothermista

Would it not be a better idea to get a 0% card and BT the debts??

Anthony_Fritts

sistafromanothermista wrote: »

Would it not be a better idea to get a 0% card and BT the debts??

This is a good idea. If possible, you should try your own bank also. Just to get the rate. You will have some more options to choose from.