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'Closing' Loan
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Hi,
I have £5 outstanding on a Halifax Loan (7.8% APR) - as I have cleared over £3,000 on it using the additional payment option this week.
I left £5 as I know they normally charge to close a loan early. So now I don't know whether to try and just pay the remaining £5 and clear the loan and see what happens, or pay the £15 that I've just been quoted via the 'close loan' section...
Anyone have any experience of this and what is best to do? Could they do anything if I just 'closed' it by clearing the remaining balance via the additional payment section?
Feel that they've had enough of my money!
I have £5 outstanding on a Halifax Loan (7.8% APR) - as I have cleared over £3,000 on it using the additional payment option this week.
I left £5 as I know they normally charge to close a loan early. So now I don't know whether to try and just pay the remaining £5 and clear the loan and see what happens, or pay the £15 that I've just been quoted via the 'close loan' section...
Anyone have any experience of this and what is best to do? Could they do anything if I just 'closed' it by clearing the remaining balance via the additional payment section?
Feel that they've had enough of my money!
- [STRIKE]Credit Card: £2,989 / £2,989[/STRIKE]
- Bank Loan: £12,000 / £14,000
0
Comments
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If you close it by a manual payment they are entitled to charge you up to 58 days interest. If you let it close by the taking of the usual direct debit (I assume you have one set up) then I believe this wouldn't generate any additional charges.0
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I do but its for over £200 and the balance is now only £5. Will that matter do you think? Thanks.
- [STRIKE]Credit Card: £2,989 / £2,989[/STRIKE]
- Bank Loan: £12,000 / £14,000
0 -
I do but its for over £200 and the balance is now only £5. Will that matter do you think? Thanks.
Nope. They'll either adjust the direct debit to only take £5, or if you overpay you can claim the money back.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 have the same issue. I am going to be paying off my wifes loan and my mine next week. So to avoid early repayment fee just leave a token amount on each account?0
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Maybe I'm being a bit dim, but if you had (say) £200 on a loan, and 'closed' it by paying off £195, then £5 a week later, you'd only be charged 58 days' interest on the £5?"Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."0
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From what I can gather, if you keep to the overpayment rules (i.e. if you can only overpay 10% a month or whatever), and so long as the final payment on your account is via the normal regular means (I.e. Direct debit), you shouldn't be charged that interest. You're only charged the interest if you pay it off earlier via other means as far as I can tell.Maybe I'm being a bit dim, but if you had (say) £200 on a loan, and 'closed' it by paying off £195, then £5 a week later, you'd only be charged 58 days' interest on the £5?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 -
Let the last d/d go through as normal - the loan will be in credit - they will refund the credit balance and no early settlement fee is due.0
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