Reconsolidate Loan

Baylesy94

Hi all,
I'm very new to this - so please be kind / don't go to town on me just yet.

I currently have a £12k loan with Lloyds - my current account provider. This is at an 18.9% interest rate, which obviously isn't great and i pay back approximately £255 a month. The reasons for this are irrelevant, given i've now fixed these issues (lack of credit history, low credit score etc.).

I am now in a much better place and have successfully increased my credit scores according to all the usual channels - Credit Club / Creditscore etc.

I note that there are various Current Account switching incentives at the moment and wondered if in taking advantage of one of these, are there any which would be beneficial in order to refinance my loan with a lower interest rate. For example, HSBC - £175 switch bonus - what are their personal loans like? Would I be eligible?

Any feedback / thoughts would be gratefully received.

Best regards,
Baylesy94

[Deleted User]

Your scores are of no relevance to lenders - they'll be looking at your history and circumstances.

Your biggest problem will be affordability - another 12k will take you to 24k, which is going to be a lot on any income. What do you currently earn? The second 12k is likely to be at a high rate because of the risk, even if you can get it at all.

You will almost certainly be better off going to the DFW boards and getting advice on how to cut costs and repay faster.

DCFC79

Baylesy94 wrote: »

Hi all,
I'm very new to this - so please be kind / don't go to town on me just yet.

I currently have a £12k loan with Lloyds - my current account provider. This is at an 18.9% interest rate, which obviously isn't great and i pay back approximately £255 a month. The reasons for this are irrelevant, given i've now fixed these issues (lack of credit history, [STRIKE]low credit score[/STRIKE] etc.).

I am now in a much better place and have successfully increased my credit scores according to all the usual channels - Credit Club / Creditscore etc.

I note that there are various Current Account switching incentives at the moment and wondered if in taking advantage of one of these, are there any which would be beneficial in order to refinance my loan with a lower interest rate. For example, HSBC - £175 switch bonus - what are their personal loans like? Would I be eligible?

Any feedback / thoughts would be gratefully received.

Best regards,
Baylesy94

Adjusted that for you, scores aren't seen by anyone other than yourself.

Whether you would be eligible for a loan at a lower rate is unknown. Have you tried the eligibility checker on MSE credit club ?

May give you an idea as to what could be on offer.


duplicated some of what zx81 said, took my time replying.

Baylesy94

Thanks for the prompt response, zx81.
Noted on the DFW boards - i'll check those out.

My earnings are currently £29,000 Gross.

[Deleted User]

Mainstream lenders won't be comfortable with you having almost a year's gross income in debt, and consolidation loans are always high risk as it is.

Get the existing debt down, and then perhaps look to transfer a smaller part of it to a lower rate.

jonesMUFCforever

Baylesy94 wrote: »

Thanks for the prompt response, zx81.
Noted on the DFW boards - i'll check those out.

My earnings are currently £29,000 Gross.

Have you spoken to Lloyds - if you have been been making the repayments on time they may be able to offer you a cheaper loan now?