Second loan to clear credit card?

katgirlie

Hi,
Looking for some advice, please be kind!

In November I took out a Zopa loan for a new bathroom, £3k over 3 years with nice low interest. We had initially been saving for the bathroom but unexpected circumstances meant it needed doing asap and couldn't wait, hence the loan.

I also have a credit card with just under £10k balance and having seen the interest rates on the zopa loans wondered whether it would be worth applying for a loan to pay this off? I could make the same payment and have the loan paid in approx 2 years less.

Is it daft to apply for a second loan within 6 months of the last one? If I'm refused, how will this affect my credit rating? Any other suggestions? I know I could look at transferring some of the balance to a 0% credit card, but I suspect over the life of the full balance it would be cheaper and quicker to have a low interest rate for the total (wouldn't it? Is there a formula I can use to calculate this? Interest makes my brain ache).

Thanks in advance...

YorkshireBoy

katgirlie wrote: »

£3k over 3 years with nice low interest.

How low is "low"?

wiltsguy_2

if it reduces your overall interst payment meaning you can clear your debts in a shorter time....it has to be better would be my look on it

katgirlie

YorkshireBoy wrote: »

How low is "low"?

The £10k loan is 4.8% typical APR

I realise I may not be offered exactly this, but it'll still be a heck of a lot lower than my m&s credit card.

Tixy

Making an application won't have a big impact on your credit file (all that will show is that a search was undertaken).

Probably worth making an application. If refused then just don't apply to lots of other lenders in a short space of time.

Pixie5740

Don't discount shifting the CC to a 0% BT deal, when the deal comes to an end you could always shift it again.

How much are you paying towards your credit card just now? Is it more or less than the loan repayments would be?

If you do manage to re-finance you need to understand how you came to have £10k on a credit card and make sure that you don't do it again, also close the CC account once the balance is paid off.