My Loan now gone up to 19.9%APR!!!!

Harrywoo

:eek:

Hello!

I have a Flexible loan of £9k with Cahoot which has just gone up to 19.9%APR!!! I also can only afford to pay the minimum repayment on this.. Now is anyone else in this predicament with Cahoot and what have you done if anything can be done? Are they allowed to put the APR up this much? I have applied for other loans and have been turned down At this rate i will never get this loan paid off!

Many thanks!!

darkcloudi

There are quite a number of threads on this subject one of which is here: http://forums.moneysavingexpert.com/showthread.html?t=469822&highlight=cahoot+loan

Have you checked your credit report to see if there is anything to worry about? Have you made to many applications within a short period of time? These all may be reasons why you may be getting turned down.

I haven't had a chance to look at the other threads on this topic, but someone here may able to point you in the right direction to what you can do.

tom188

They can change your loan rate whenever they want - it is variable rate, Santander seem to running down cahoot and i think these rate rises are aimed at getting rid of most people and profitting from the rest. Others have had their loan rates changed to 29.9%, and this is part of a market wide trend.

If you have made a lot of applications recently or missed payments in the past then this decreases the likelihood of getting accepted, both will be repaired with time (provided you keep up with repayments) so in these situations it would be best not to apply again for six-nine months or so. As said before get your credit reports and check the data on them is correct.

Lastly consider visiting the debt free wannabe board for advice on cutting your expenditure so that you have more surplus income to throw at your debt.

Harrywoo

Where would i get my Credit Reports from?

tom188

Credit rating agencies Experian, Equifax and Call Credit. Get the statuatory reports that cost £2 each

CHR15

You can get a free report from here:

https://www.annualcreditreport.co.uk

You have to wait for the password to arrive by 2nd class post but it is completely free.

jacquij123

I wouldn't really go by that 'annualcreditreport', I got one and it is missing most of the information that I know should be on there. O.K. if you're aware of it but may be mislead into thinking things are better than they really are.

darkcloudi

http://www.creditexpert.co.uk would be a good one to start off with and get a 30 days trial ( Ensure you cancel before the trial is up ). Also if you go through Quidco http://www.quidco.com you will get £5