Two smaller loans vs one bigger one

cjstepinrazor

Hi,

I currently have a loan with sainsburys at £11000 (4.4%) and am looking at the possibility of another loan for around £9000 (for a suitable company car due to a change of position). The headline loan rate for loans over £15,000 is 6.6% with them, but they also say that you can have up to two loans. Does this mean it would be possible to take out a second loan at 4.4% (and what are the chances of a second loan at headline rate vs a single larger one). Does anyone have any experience of this?

FYI, the other option is to sell the existing car instead of using it as a part exchange. This would pay off the existing loan and give me an additional £6500 or so towards the deposit of the new one, but the remaining balance would then be paid for by dealership finance which is likely to be greater than a personal loan rate!

Thanks in advance!

Apples2

We have no idea if you stack shelves in Pound Stretcher on minimum wage or an Investment Banker on Film Start wages, nor what your credit file is like, nor what other debts you have.

As a guestimate, if you are looking at total unsecured borrowing of £20,000 you should be earning well in excess of £40,000, have a spotless credit file and plenty of perfect history on your file to go on.