Flexible Loans

ben9090

Does anyone know of a flexible loan provider where you can pay back whatever you want each month and clear it as fast as you can?

Many years ago I had a Cahoot loan and it was almost like a credit card where you were given a limit and paid off whatever you wanted monthly, but could then withrdraw funds and borrow it back at any time? Id be happy with a slightly less competitive rate for this amount of flexibility.

Thanks

andyfromotley

would a low apr credit card meet your needs, seems to have exactly the flexibility that your cahoot loan had?


http://www.tescobank.com/credit-cards/low-apr/index.html?atlassource=paid&cmpid=ppc/acq/sv/g/g/na

andyfromotley

I haven't searched around but i am sure there will be others that are similar.

27col

Try Zopa. You can pay what you want each month, so long as it is more than the agreed repayment.

Tixy

Whilst all loans will allow you overpayments now, few will allow you to borrow back the overpayments.

HSBC still do these type of flexi-loans, where you can borrow back any overpayments you have made, not sure if you need to have an HSBC current account. That said I think the interest rates used to be quite high (similar to their overdraft rates).

Failing that if you are disciplined you could use an overdraft in the same way.

CHR15

That cahoot flexibility is what saw the interest rates go from 6% up to 16% in a few months. it crippled people financially.
People couldn't restrain themselves from continually dipping into it but couldn't make the repayments.

in the new world order of not trusting adults to make their own decisions I doubt you will find many similar products. a credit card is the closest.

jamesd

ben9090 wrote: »

Does anyone know of a flexible loan provider where you can pay back whatever you want each month and clear it as fast as you can?

This is a mandatory legal requirement for all personal loans. Every new loan you can take out will allow it.

ben9090 wrote: »

Many years ago I had a Cahoot loan and it was almost like a credit card where you were given a limit and paid off whatever you wanted monthly, but could then withrdraw funds and borrow it back at any time? Id be happy with a slightly less competitive rate for this amount of flexibility.

I don't know of one with this degree of flexibility,

If you are thinking of doing lots of early repaying you should avoid loans that have an up-front fee. That fee will be spread over the whole amount borrowed over the whole term and if you repay faster the effective interest rate will go up due to the increased effect of the fee on the lower average balance.

A credit card 0% for spending deal can allow rapid initial payments off a loan, with you then switching to balance transfers from the card to avoid paying interest.