Loan to cover credit cards?

ellenajade

I have two credit cards (£3800 and £900) both maxed out. I want to get a loan for a new car. Can I/should I get a loan to cover the cost of the new car and the credit cards and be left with one monthly payment? I would be getting the loan for around £13000 with a 24 month term and hopefully a 5% interest rate.

Will I even be accepted for a loan with £4700 outstanding on credit cards?

I am a full time worker living at home.

Thanks in advance

[Deleted User]

Depends how much you earn (as well as your credit history).

But I would guess it's unlikely, if the cards are maxed out, and you have nothing in savings.

Tixy

How much are you paying off the cards a month currently?

If you can get a loan at a cheap APR (and cheaper than the existing card APRs)
If you can afford repayments on that loan
If you definitely won't then reuse the credit cards to build up more debt

Then it could be a good idea.

However whether you can get a loan of that size and at what APR will depend on your income, your credit history and your other circumstances.

dealer_wins

How can you afford a new car + loan when you are already living beyond your means and maxed out your cards!

Jon_B_2

How much do you earn?


A £13k loan over 24 months at 5% is an eye watering £570/month.


Would you cut the credit cards up afterwards?!