Requesting larger loan to access improved interest rate

critter4

I'm considering applying for a personal loan to cover some unexpected expenses (I need to move into alternative rented accommodation asap). I have however noticed that the interest rates my bank (NatWest) are offering aren't great for the amount I want to borrow (£3000).

I also have £2000 left to pay on a student credit card (currently at 24.9% APR) that built up during my degree.

Does it make sense to request a £5000 loan over 2 years to access the 6.9% rate and pay off the credit card right away with the remaining funds?

I have been with my employer for 6 months, my salary is £37,000 and I have never missed a payment so I imagine I would be approved.

CLAPTON

Yes it would make sense

forgotmyname

Only if your likely to be accepted at the 6.9%.

What if they offer you the loan at 29.9%?

Or refuse you completely. Where they may accept you with a smaller loan.

How much have you saved each month since starting work?

critter4

forgotmyname wrote: »

Only if your likely to be accepted at the 6.9%.

What if they offer you the loan at 29.9%?

Or refuse you completely. Where they may accept you with a smaller loan.

How much have you saved each month since starting work?

Thanks for the advice, i'll keep those things in mind if I decide to apply for a loan. I have been working on paying off the credit card if i'm honest at £400 per month and only saved £300 per month.