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5k Loan Advice
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Looking for some advice, I want to get a £5000 loan.
I wondered if it'd be better to get HSBC's loan at 3.9% which starts at £7000:
https://www.hsbc.co.uk/1/2/loans/personal-loan/personal-loans
If I loaned £7000 then pay back £2000 immediately. Would this work? Or would there be a catch?
I wondered if it'd be better to get HSBC's loan at 3.9% which starts at £7000:
https://www.hsbc.co.uk/1/2/loans/personal-loan/personal-loans
If I loaned £7000 then pay back £2000 immediately. Would this work? Or would there be a catch?
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Looking for some advice, I want to get a £5000 loan.
I wondered if it'd be better to get HSBC's loan at 3.9% which starts at £7000:
www.hsbc.co.uk/1/2/loans/personal-loan/personal-loans
If I loaned £7000 then pay back £2000 immediately. Would this work? Or would there be a catch?
Hi ook
Based on representative APRs, you would still end up paying back approximately £300 more in interest this way.
The terms of the loan will not necessarily allow for overpayments, at least not at such an early stage.
Dennis
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0 -
Why don't you apply for a money transfer credit card like virgin money MBNA, you will pay handling fee 4%, and have it 0% interest for 29 months0
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Thanks for the advice, National Debtline and mcmaze. I like the sound of the MBNA card, found the MSE article on money transfers - will take a look at that.
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National_Debtline wrote: »Hi ook
Based on representative APRs, you would still end up paying back approximately £300 more in interest this way.
The terms of the loan will not necessarily allow for overpayments, at least not at such an early stage.
Dennis
@natdebtline
Struggling to see how that's true, it's regularly the case that borrowing slightly more money on a personal loan, which in turn gives you a lower rate, can save you money. The main risk is if you actually get accepted at the 3.9% rate.
HSBC allow unlimited overpayments without charge from day 1. You would save money by taking out the £7k loan and paying £2k back (so long as you get the 3.9% rate). Remember that HSBC are one of the pickiest lenders though.Credit 'Score' - Don't buy the credit 'score' that Experian, Equifax and Noddle want to sell you. It's an arbitrary number that means nothing when it comes to applying for credit.
ALWAYS HAVE A DIRECT DEBIT SET UP FOR THE MINIMUM PAYMENT ON YOUR CREDIT CARDS, REGARDLESS OF WHETHER YOU PLAN TO LOGIN AND PAY EACH MONTH.0 -
I shouldn't make any plans based on a rate of 3.9% until you actually get an offer of 3.9%. You might find that you are only offered a loan at a much higher rate.I can afford anything that I want.
Just so long as I don't want much.0 -
ignore this post thanks!0
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