Is this a good deal?

AliceBanned

Hi


I have been provisionally offered an Avanti loan - applied for £3500 - admin fee upfront is £189 then the cost is 0.70% interest - without the admin fee I believe that works out at 8.7% APR. I have a 0% credit card coming to an end in January and have £3500 balance on it. I find I am being offered better loans than credit cards and prefer them as I tend to stick to the repayments so effectively I would be transferring the credit card debt to the loan. Another loan comes to an end in January so I could afford the repayments of £304 per month (12 months repayment with option to repay early).


I am not sure whether I should just stick with the credit card and pay it off instead?


I have paid off £4000 on my debts in the past 1.5 years so I am now on a budget so borrowing to save me interest is a worthwhile thing. I am also hoping to get a bigger mortgage in a year or two so need to continue debt busting.

AliceBanned

PS I forgot to mention it is a Co-op card and the interest would be 26% after the 0% period.

pappa_golf

DO NOT pay an admin fee up front , any fees should be added to the loan repayment

AliceBanned

pappa_golf wrote: »

DO NOT pay an admin fee up front , any fees should be added to the loan repayment

Hi sorry that's what I meant - they add it to the balance of the loan. But hard then to work out the equivalent APR!

cjmillsnun

It’s fine as long as you don’t rack up more debt once you’ve shuffled this over.

Candyapple

Low rate credit cards instead of a loan:
https://www.uswitch.com/credit-cards/low-apr-credit-cards/

Are you eligible for any 0% balance transfer cards with no fees?
https://creditcards.moneysavingexpert.com/?balance-transfer

AliceBanned

Thanks Candyapple. I'm not eligible for good credit card deals at the moment but I have decided to hold off on the loan and then apply for 0%card in early 2018.


I decided the loan isn't quite right for me.