Loan or balance transfer???

martsfs100

Hi everyone, just a little advice really, I'm not sure which is the best course of action because I recently checked with Nationwide on a loan (I have a c/a with them) and the interest offered from them on £8000 came back at 13.8%. This has risen massively as was offered the advertised 5.9% when I checked back in late January. Why do you think this is? I have a loan remaining amount of £10,000 @ 6% £290 per month & 3 years remaining, which I'm happy to leave alone, but I have about £7500 on a 0% deal (Virgin C/C) which is due to expire end of month and £1950 on 0% (Nationwide) due to end mid July, hence the query with the loan as I don't expect to get a balance any where near this amount on a new B/T offer, what would be my best course of action, I'm currently paying in total £300 to the c/c, I have never missed a payment and have closed previously held C/C's.
My yearly salary varies between £18500 & £20000+ depending on overtime worked, sorry for the essay and thx for your replys..m

grumbler

martsfs100 wrote: »

...I recently checked with Nationwide on a loan (I have a c/a with them) and the interest offered from them on £8000 came back at 13.8%. This has risen massively as was offered the advertised 5.9% when I checked back in late January. Why do you think this is?

Because of the recent credit search(es)?
Was it a 'soft' quote in Jan? Even if it was, they possibly keep internal records.

Re a CC, IMO with ~100% debt/income ratio you'll struggle to get a new card with a decent limit.
Try MSE's 'soft' Tool: Check your eligibility for best buys

onerickylambert

13.8% is likely to be better than the standard rate on the cards you have once the 0% ends, so worst case take this. However have a look around, Sainsburys are offering 4.4/4.5% on £9500, I have trouble getting cards but they accepted me for a loan. If you are looking to balance transfer you could try Barclaycard (0% for 30 months with a 2.89% fee), the problem you have is you may need to get 2 or more credit cards to BT the £9500, which as you say is difficult in a short space of time. It could be that a loan from another provider is the the best option.

MallyGirl

martsfs100 wrote: »

I have a loan remaining amount of £10,000 @ 6% £290 per month & 3 years remaining, which I'm happy to leave alone, but I have about £7500 on a 0% deal (Virgin C/C) which is due to expire end of month and £1950 on 0% (Nationwide) due to end mid July, hence the query with the loan as I don't expect to get a balance any where near this amount on a new B/T offer, what would be my best course of action, I'm currently paying in total £300 to the c/c, I have never missed a payment and have closed previously held C/C's.
My yearly salary varies between £18500 & £20000+ depending on overtime worked, sorry for the essay and thx for your replys..m

If you earn £20k and you already have debts of £10k (loan) + £7.5k (CC) + £2k (CC) that is pretty much debt equals salary. usually around 50% of salary starts ringing alarm bells so I am surprised you got a loan offered at all. Could be time to get over to the Debt Free Wannabe section and see what you can change to sort this out.