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How long after pay rise ?
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So, I applied for and accepted an unsecured loan a few months back (£5K @ 11.7%APR over 3 years). This was via Hitachi and I had applied to them because their advertised rate was appealing (something like 3-4%). Since that date, I've been fortunate enough to have gained a workplace promotion this last month. My salary has increased by almost £10K pa. 
My question is how long should I leave things before trying to apply for better lines of credit due to my improved circumstances? (i.e. loan with possible lower APR or money transfer CC) . I realise this is not going to be a straightforward 'X amount of time' answer. I'm just interested in how long positive changes take to filter across the various companies.
For what it's worth, my credit file(s) are generally in good shape. My previous income level seems to be the only major factor I'm aware of as to why I was being offered the above rates.

My question is how long should I leave things before trying to apply for better lines of credit due to my improved circumstances? (i.e. loan with possible lower APR or money transfer CC) . I realise this is not going to be a straightforward 'X amount of time' answer. I'm just interested in how long positive changes take to filter across the various companies.
For what it's worth, my credit file(s) are generally in good shape. My previous income level seems to be the only major factor I'm aware of as to why I was being offered the above rates.
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Can you over pay on your loan. Then it would be clear within a a year going by your pay riseMortgage free wannabe
Actual mortgage stating amount £75,150
Overpayment paused to pay off cc
Starting balance £66,565.45
Current balance £58,108
Cc around 8k.0 -
£5k loan but over £10k extra, why reapply for a loan, just clear it in 6 months?!0
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I agree with the previous posters overpaying is the way forward and clear it all ASAP.I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
If you can't be the best -
Just be better than you were yesterday.0 -
overpayment will save interest as well, have a google for loan overpayment calculator.... see how much you can save by overpaying
but, as all have said, clear this full, dont take out other applications in the hope of getting better interest rates0 -
I'd use the extra money to pay it off quicker.0
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So, I applied for and accepted an unsecured loan a few months back (£5K @ 11.7%APR over 3 years). This was via Hitachi and I had applied to them because their advertised rate was appealing (something like 3-4%). Since that date, I've been fortunate enough to have gained a workplace promotion this last month. My salary has increased by almost £10K pa.
My question is how long should I leave things before trying to apply for better lines of credit due to my improved circumstances? (i.e. loan with possible lower APR or money transfer CC) . I realise this is not going to be a straightforward 'X amount of time' answer. I'm just interested in how long positive changes take to filter across the various companies.
For what it's worth, my credit file(s) are generally in good shape. My previous income level seems to be the only major factor I'm aware of as to why I was being offered the above rates.
If you've had a £10K pay rise, why do you need to take on debt?I came into this world with nothing and I've got most of it left.0 -
Thanks all. Seems unanimous that I'm better off keeping and tackling the current loan now that I'm financially better able to.0
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Just because you earn more doesnt make you a better risk. Lots of people earn a lot of money yet manage to spend more than they earn.
If your £10k better off why do you need to borrow money? If you save they pay you.Censorship Reigns Supreme in Troll City...0 -
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Take the difference in your monthly income and put it straight into overpaying the loan, and then into savings.
Then next time if you need to borrow you'll have a better credit score, higher salary and bank statements to prove it0
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