Should I repay and old loan before applying for a new?

Sam_R

Hello there, First post but I've been reading the forums for a long time now =]

Basically, I have a loan out of £1,700 that only has £325 left to pay on it which will be cleared by November, I also have 2 credit cards with £1,000 each on them and an overdraft available but not in use of another £1,000.

I'm wanting to apply for a loan but I'm not sure whether it'd be best to pay off the loan first? I could afford to pay it off but if I don't get the loan the £300 it cost be could have came in very handy.

Hope that makes sense.
Thanks

matttye

Do you need the loan urgently?

Might be best if you can wait until you can comfortably pay off the existing loan. Then you'd need to wait a month after paying it off to allow your credit files time to update, then apply for the new loan.

What's your income? If your overall available credit isn't that high compared to your income then you can probably go ahead and apply straight away.

I know this is the loans forum, but I just want to throw out the saving suggestion as well

Sam_R

I would need the loan before the old loan would be paid off just by monthly payments.

My pay is due to increase by about 2k a year in April, so I'm thinking maybe wait until then anyway, I suppose by the time I got my new payslip I'd already have paid off another £70 so that takes the old loan down to less than £300 which doesn't seem too harsh... ?

matttye

It depends what your income is.

Owing just over £2,000 when you earn £50k a year is different to when you earn £9k a year.

Sam_R

Currently earn just over 15k But it's rising to 17k in april sorry, totally missed the question there lol