Free Money From Loans??

bigEm

Just run a few figures after seeing that new Firstplus loans advert on TV with the extremely dull Ms vorderman offering £500 cashback after 3 payments have been made on the loan.
This got me wondering if I could actually MAKE money by taking the loan and repaying after 4 months. It seems after reading the small print (if I've read it right) that if you were to borrow £5k over 5yrs from them made the first 4 payments had your £500 cashback and pay the loan off, even after paying interest and early payment fee you'd be around £250 up on the deal plus the interest you've had on the £5k. May just be me so would appreciate somebody elses view!!

Have made money on loans in the past by investing loan money in a fixed bond paying more interest out than I was paying on the loan, not so good these days as loan rates are too high

Cheers

BigEm

CLAPTON

very interesting

looking at the website i can't see the 'termination' fees but it looks as if you would pay about 200 in interest on a 5k loan (up to six months)

so you may well be correct.

bigEm

CLAPTON wrote: »

very interesting

looking at the website i can't see the 'termination' fees but it looks as if you would pay about 200 in interest on a 5k loan (up to six months)

so you may well be correct.

Maybe my figures arent that good then, as I worked out overall interest over 5yrs as £1035.40 approx £17.25 per month making 4 months interest £69.00 plus two month interest for early payment gives £103.50 then in the T&Cs it states there is a £150 early payment fee giving around £250 ish in costs. If your interest calc is right than after we've added the £150 fee we're only making £150 still good but maybe not worth the hastle!!

Oh well worth a try, thanks for the reply mate

BigEm

CLAPTON

in the early months the interest will be about 33 per month...(5000x7.9%/12 =33) as no (or very little ) capital has yet been paid off.