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Can you be a Refund Loan Tart?
ToReadItSanctifiesIt
Posts: 8 Forumite
in Loans
Can I repeatedly take out a personal loan, then pay it back as per the 28 days refund eligibility that all lenders must adhere to?
In other words can I take out a loan from Lender A, the a month later pay it back with a loan from Lender B, the a month later pay that back with money from Lender C, etc?
I know some lenders will charge you interest for the time you had their money, so it may still cost. But some don't do that, meaning you had their money for free.
Finally, would constantly taking out loans and then returning them (ie getting a refund) mess up my credit score?
In other words can I take out a loan from Lender A, the a month later pay it back with a loan from Lender B, the a month later pay that back with money from Lender C, etc?
I know some lenders will charge you interest for the time you had their money, so it may still cost. But some don't do that, meaning you had their money for free.
Finally, would constantly taking out loans and then returning them (ie getting a refund) mess up my credit score?
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Comments
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taking out loan after loan probably wouldnt be possible as your credit rating would he hammered0
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Admin charges would surely cost more than any potential interest you may get from it?
Maybe seen as dodgy when you apply for loan No.2 You took out a loan less than 28 days ago. Then a 3rd application when the 1st one had not even been updated on the credit file.
I can see you getting all your accounts examined under close scrutiny.Censorship Reigns Supreme in Troll City...0 -
Perhaps I've missed something. But it seems to be a completely pointless exercise. But as it ain't going to happen it hardly matters.I can afford anything that I want.
Just so long as I don't want much.0 -
I think this genius is suggesting you could take out a 10k loan and simply use other 10k loans each and every month so you never repay the loan.....ever
Sounds like a plan.0 -
I don't think you're legally allowed to repay a loan with a loan...
HBS x"I believe in ordinary acts of bravery, in the courage that drives one person to stand up for another."
"It's easy to know what you're against, quite another to know what you're for."
#Bremainer0 -
heartbreak_star wrote: »I don't think you're legally allowed to repay a loan with a loan...
HBS x
Of course you are! people do it all the time.
I am pretty sure Martin promotes it about replacing expensive debt with cheaper debt if you can.
I cannot see any point in this little scheme though.Thinking critically since 1996....0 -
heartbreak_star wrote: »I don't think you're legally allowed to repay a loan with a loan...
HBS x
It's called consolidation
But the OP's little plan is doomed to failure when he fails to get the second loan and is stuck with the first one.0
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