Borrowing more then i need to get longer term

StuC75

Tesco Loans are fine with this overpayment.
They will then write confirming whether you want the overpayment to reduce the Term (Keep same payment) or reduce the payment (keep original term).. This is what happened when I was paying mine off over a couple of months.

Clive_Woody

markey164 wrote: »

I'm looking at taking out a Tesco loan, but for loans under £15k, the max term is 5 years, whereas if i borrow £15k, the max term is 10 years. The 5 year term would make my payments higher than i'm comfortable with.

Could i take out the bigger loan, then after a couple of months pay the difference back as an overpayment? I could then retain the longer term, and hence lower monthly payments, giving me more disposable income.

Is there anything wrong with doing this?

A lot of the points have already been answered but are you sure that Tesco will lend you £15k?

Normally people say you can borrow a maximum of 50% of your salary (that's assuming a clean credit file).