please help - want to get rid of CC's

Chelsea1979

Hi everyone - I posted this on the loan forum but no replies yet...

Im currently trying to consolidate my credit cards into a three year loan for £10,000. Ive been quoted 11.4% by Nationwide soft search and have a few questions. How likely am I to get the 11.4% the soft search suggests, and is this an OK rate? I do have another loan with them that is half way through the term, do all my banking with them.

If I decided to apply for a different loan today and was refused would this affect the chances of the Nationwide one being accepted?

I am not sure what to do - I am tempted to apply for this but was hoping for a slightly better rate.

Since posting Ive read that it might be a good idea to ask the CC company for a lower APR for the life of the balance (currently 19% on £6.5 k and one due to be 24% on £3.5 once the 0% runs out?)

Im married, earn £28k, home owner, excellent repayment history. 2 CC's (one 6.5k, the other3.5k). My OH earns a more than me (40k approx) but is a temporary worker so I will be applying in my sole name. We can afford to pay £3-400 comfortably per month.

Any advice please? Im paying £200 per month at the minute but the interest is why I am trying to sort things out, thanks

bengalknights

Have you tried speaking to Nationwide about a top up loan?

It could actually be more beneficial to you

Chelsea1979

Hi

the Nationwide soft search offered two options. One is continue with old loan (£6k remaining at 7.4%APR) and get new loan at 11.4%.

Option 2 is to get a new loan for the whole amount of £16k at a new APR of 13.9% APR

Im not sure how representative the soft search is of what they might actually offer.

CLAPTON

you seem to have debts totalling 16k and an income of 28k

when you apply for a 10k loan the potentially lender will see you as having debts of 26k.
on an income of only 28k, most lenders will refuse outright as having a far to high debt to income ratio.

maybe nationwide are your best bet.

The_Boss

CLAPTON wrote: »

you seem to have debts totalling 16k and an income of 28k

when you apply for a 10k loan the potentially lender will see you as having debts of 26k.
on an income of only 28k, most lenders will refuse outright as having a far to high debt to income ratio.

maybe nationwide are your best bet.

I'm wondering if a 0% credit card and shifting as much of the debt as possible to it may have a better chance as the lender could offer a limit to that will at least help in the meantime, and if an existing card can be paid off then they may offer a low rate for life or 0% offer...

Chelsea1979

I called Barclaycard who said that they can not do anything about the current rate. It was an outright no

I think I might have to apply for the Nationwide loan

Xiderpunk

I know this will not help much, but 11.4% is very high. I would not consider a rate above 6%.

Perhaps try Sainsbury's, they are offering three year max loan's at 5.1% at the moment. If they decline then try using the well known money comparison website and try some of the other lenders offering similar rates.

Chelsea1979

Ive applied for the Nationwide one and been approved in principle..

Would it be harmful to try Sainsburys now?

Chelsea1979

I would obviously prefer a lower rate. Nationwide advertise 5.9% but obviously Im a bit riskier.

sfax

Chelsea1979 wrote: »

Ive applied for the Nationwide one and been approved in principle..

Would it be harmful to try Sainsburys now?

No, apply now. Worst case scenario is a rejection and a recorded search which will become immaterial in 6 months

CLAPTON

Xiderpunk wrote: »

I know this will not help much, but 11.4% is very high. I would not consider a rate above 6%.

Perhaps try Sainsbury's, they are offering three year max loan's at 5.1% at the moment. If they decline then try using the well known money comparison website and try some of the other lenders offering similar rates.

Do you have existing debts of 16k, an income of 28K and are applying for a 10k loan?