Is now a good time to apply for a loan

leedsfan_3

Hi folks I am currently earning 16,500 and would like to obtain an unsecured loan of 7,000 over the course of 4 years to pay for a holiday, car and to improve my hi fi. I have now also had a credit card for 3 months, thus creating a credit history. I have checked my experian credit report and score 849 and am in the process of making sure the information is correct with equifax also. Asssuming it is, if I applied for a loan now do you think I would be offered a reasonable APR rate i.e. sub 9%?

Thanks in advance amigos

jonesMUFCforever

You might be able to reduce your interest bill a bit by not taking a loan out for the whole amount.

How much available funds do you have each month towards any repayment?

The holiday could go on a new 0% credit card for instance, the hi-fi shop might have a buy now pay later scheme whereby no interest would be payable if you repay within a year.

Lumping everything might not be the best option for you.

CLAPTON

7000 loan an an income of 16,500 is very high as this represents over 50% of your yearly take home pay.

borrowing money over 4 years in part to pay for a holiday is unwise as you will be paying for the holiday long after its finished

I would suggest you revise your borrowing plans and think about saving up for these things... maybe a cheap car is essential if you need it to get to work but hifi and a holiday should be saved for.

leedsfan_3

I appreciate what you are saying but with respect, that was not what i was asking. I am interested in the loan route because to be honest I don't want to mess around with balance transfers, that might seem lazy and yes it is but I am just trying to get a loan and hi fi seperates do not come cheap either. I want a nice enough car and the holiday will also not come cheap. I appreciate that it's not prudent but everything at the moment is going on christmas. All I am asking is whether you think I will get a reasonable APR but commenting directly on the proportion of my take home pay against salary, most lenders have a policy of not giving above 70% of what is your salary.

nomoneytoday

The only people who can decide your APR are the lenders...

Zebedee69

Im not giving you advice, you sound like a BR stat in the making:rolleyes:

iolanthe07

Ahhh....the first steps on the slippery slope. I feel quite nostalgic.

jonesMUFCforever

Leedsfan - remember when Leeds were in the Premiership and got to the semi final of Champions league??

Where are they now??????

Why??????

THEY SPENT MONEY THEY COULD NOT AFFORD!

Does this ring any bells?

You give no information about your age and job security - whether you pay rent or mortgage and as per my post 2 how much can you afford to pay each month.
When we know this we may be able to give you advice.

My gut feeling is that you will be lucky to get a loan offer for less than 10% unless there is a rate cut soon.

Zebedee69

I think anyone who asks the question "Is now a good time to apply" shouldnt be allowed credit full stop.

Dont people read the news? Credit Crunch! ha ha!

leedsfan_3

Firstly the so called credit crunch does not prevent people from getting access to cheapish loan perhaps if I had CCJS or poor repayment of debt than I might be considered a non start but this is not the case. Secondly there is nothing indicative in the nature of my question which suggests I should not be looking at a loan. The question was merely there because a loan would allow me to have the money necessary for what I intend right now. However I would not do this if the APR was too high. Furthermore the example of Leeds as an example was an extremely poor one I am only going to take a loan if the APR is at a reasonable rate. Whereas on the other hand Leeds were taking higher purchase deals which would cost in excess of 40% which also meant that their must liquid of assets would not net the club any profit.

My circumstances are that I pay rent to a parent. I am definitely not looking to move especially with the housing market like it is I would be completely and utterly financially enslaved. I am in full time employment and have been for the past six months prior to that I was in fleeting temporary employment which is the reason why i don't have the necessary funds at this moment. I am looking at a loan because it is much more convenient than messing about with applying for new credit cards. I have disposable income of about 560.00 but as christmas is around the corner it's an expensive time of year. The issue is NOT that I need this money to cover a short fall the issue is that I want this money now and am more than able to meet the repayments. I have thought about this and it's not a big risk certainly much less of one than someone who is tied to a mortgage which leaves them penniless each and every month.

jonesMUFCforever

Your laziness is going to cost you.
If you are happy to pay for convenience fine - get a loan.
I know I would do things differently.