sainsbury loan offer

malich

Have just noted sainsbury loan offer via ML website. Option to borrow £5000 over 3 yrs total cost £600. Want to use this for some home improvements & hols.Could use some of my savings from my ISA's, but like the idea of using the banks money & paying off early what do other forum users think? Thanks

stephane_2

A loan for holidays.....madness!!!

BugsyBrowne

malich wrote: »

Have just noted sainsbury loan offer via ML website. Option to borrow £5000 over 3 yrs total cost £600. Want to use this for some home improvements & hols.Could use some of my savings from my ISA's, but like the idea of using the banks money & paying off early what do other forum users think? Thanks

0% purchase credit card would of been better.

malich

understand thoughts re a loan for hol is madness but it is a way of avoiding using my own money with such a cheap loan available, how do i use a credit card for a builder who requires cash??

stephane_2

You need to have a credit card like MBNA which allow you to transfer money directly to your bank account with a fee of 4%...

BugsyBrowne

You'll also need a long spotless credit history of managing credit products to be accepted for a sainsbury loan.

malich

credit card option interesting thanks but i will have to pay interest on outstanding balance? Credit history is spotless

stephane_2

With MBNA you'll get the first 17 or 20 months interest free....then after yes you'll have to pay interest on the remaining outstanding balance unless you move it again onto another credit card with a 0% offer....

marathon_man_3

What is the difference between the interest you earn on the savings and what you will pay on the loan.

Personally, I could never enjoy a holiday that I hadn't paid for in advance without owing anybody for the cost.

molerat

You would need to be getting more than 3.9% net on savings (unlikely!) to make this 7.9% apr loan pay so take it out of savings and pay it back at £155 a month.

BugsyBrowne

marathon_man wrote: »

What is the difference between the interest you earn on the savings and what you will pay on the loan.

Personally, I could never enjoy a holiday that I hadn't paid for in advance without owing anybody for the cost.

My holiday each year is around £1400 which I use a credit card and normally pay this up around two months after I return or if any of us has a 0% at the time we'll use this.