Loans - better to get 2 x small loans or one big one? (around 25K)

DaveyUK

Hi I'm looking to borrow about £25,000 very soon but wondered if it's better to get two smaller loans or one for the whole amount? Is it a big no no to apply for 2 x smaller loans at the same time? Ideally I'd like the whole amount within 1 month but I wouldn't want to jeopardize my chances of getting the second loan if I chose to go down that route.
All advice welcome please. 
Thanks in advance :-D 

foxy-stoat

If you need 25 large soon and you have a good credit history with no other debt and an annual salary north of 50K then try for a 25K loan.  If you get a knock back then its unlikely you will get two 12.5K loans but you can only try.

Another route would be get a load of credit cards with money transfer deals and do the balance transfer shuffle for a few years.

Clive_Woody

Very much depends on how much you earn, current debt levels and anything scary on your credit file.

I took out a £25k loan a couple of years ago and it was in my account same day, but I met their lending profile and got the headline rate. Lots of factors will affect whether you get a loan of this size, what APR they offer and how quickly they make their decision.

Nebulous2

Both loans in your own name? 

Best rates on loans are usually for £7.5-15k. Above that they creep up a bit. Problems might be getting accepted at all, and getting accepted at the right rate. You could get one at a very good rate then find the second is higher. 

Grumpy_chap

The OP has not indicated what the £25k (2 x £12.5k) loan is required for.  This may affect the best approach to obtain the loans - especially if the items have some 'tailored' finance offered.  It is quite a large unsecured loan level, and obviously the biggest factors are going to be income level and affordability.  

IF I were a lender, all other things being equal, and affordability for the full £25k being fine, then I think I would prefer the single application for £25k.  This is clean and simple.  If I lent someone £12.5k and then a few months after they asked for another £12.5k I might think they are not planning their finances very well and when would they be back for another £12.5k.

That is just what I think though and I am not a lender, so what I think counts for nothing.

bris

Whatever is cheapest is probably the obvious answer.

Sandtree

The cheapest option is most likely to be two loans as the APR tends to go up after £15k however what would be your plan if you got one loan approved and the other declined?  If its an all or nothing then the only real option is a single loan and swallow the slightly higher interest rates.

dano17439

Clive_Woody said:

Very much depends on how much you earn, current debt levels and anything scary on your credit file.

I took out a £25k loan a couple of years ago and it was in my account same day, but I met their lending profile and got the headline rate. Lots of factors will affect whether you get a loan of this size, what APR they offer and how quickly they make their decision.

Same - 25K at 3.3% i think with Tescos. I was surprised as others have said in this thread the interest rate tends to increase to 6%+ over 15k borrowed