High interest rate

TLR_2

Hi,

I am looking for a loan for a new motorbike

And also to pay off my LloydsTSB loan that I took out with loan protection at 12.9% before I knew anything about loans.

(There's £2000 left, no early redemption fee, so I thought I would make a big saving by paying that off)

I am getting £5000 in total to leave me with £3000 to get the bike.

I used MoneyBackBank to get my quote, and they were HORRIBLE! I was grilled about insurance for about 15-20 minutes and I told them to cancel the whole application because I wanted to try somewhere else.

But he ended up putting it through, and it was 10.1%!

Is this really high? Or a good interest rate?

I've been looking at guaranteed loans, on this site it says Eskimo Loans is guaranteed, but on the website it says typical?

Am I going to hurt my credit rating by getting another quote with someone else?

TLR_2

Just to add as well my account has been constantly in the red for the past couple of years, I have a £2000 overdraft and I keep treating this as the amount of money I have to spent.

I pay about £24 for this priviledge, should I add the overdraft amount to the loan and get back in the black?

T

lynzpower

TLR wrote: »

Just to add as well my account has been constantly in the red for the past couple of years, I have a £2000 overdraft and I keep treating this as the amount of money I have to spent.

I pay about £24 for this priviledge, should I add the overdraft amount to the loan and get back in the black?

T

Why dont you just let the Ltsb one run its course and get the motorbike on a 0% credit card? or a low life of balance CC? Probalby get a better rate than 10%!

I wouldnt get your overdraft included in any loan unless a) you are certain you will not overspend agAin b) that the APR on the overdraft is igher than the APR on the loan. Why dont you change banks and get a interest free overdraft?

TLR_2

Don't you have to have been in credit for a while to get an interest free overdraft?

I've been in the red for about 2 years!

I'll be buying the bike privately, so I won't have the option to pay by card.

Thanks for the help,

T

TLR_2

Anyone got any ideas?

T

alwaysonthego_2

you could do a balance tranfere to your b/account. I am with the Abbey card and get free interest till feb on all balance tranferes

TLR_2

Balance transfer?

tom188

http://www.moneysavingexpert.com/cards/balance-transfer-credit-cards

mbna issued cards allow you to transfer money onto their credit cards using credit card cheques and offer 0% deals of typically 12 months whereby you just pay a balance transfer fee of 2.5% and have interest free credit for the rest of the year.

You pay the cheque into your current account then on to wherever it is needed.

TLR_2

I don't understand, you mean I transfer my overdraft onto the credit card?

T

tom188

For example...

You apply for a 0% credit card, this has a limit of say 5k.
You use the accompanying cheques to transfer £5k into your current account.
You then transfer that 5k to your existing loan/do what ever you want with it as it is now accessible as a credit in your current account.
You make repayments to your credit card every month.
When the 0% has come to an end you shift the unpaid debt onto a new 0% card and continue to repay etc...

tom188

This only works with card providers that allow transfers into your current account. At the moment this is usually Egg or MBNA group cards.