Cheap Loans: How to get your lowest possible rate Discussion Area

Former_MSE_Wendy Posts: 929 Forumite
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edited 12 September 2023 at 2:37PM in Loans
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Cheap Personal Loans: How to get your lowest possible rate article

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  • Twisted_Jester

    I currently have a loan with Northern Rock and wanted to extend it in order to upgrade my car due to needing something bigger for a new arrival without increasing my monthly outgoings too much, obviously Northern Rock are no longer offering loans and so I will need to change to another company.

    What I'm wondering is whether I am likely to experience any problems with my application due to the amount I already have borrowed even though I intend to settle it with the new loan or should I just look at a separate loan for the amount of money I need.

    A separate loan would be affordable due to another outgoing ending shortly but would prefer to keep this extra cash for any future needs of the little one if possible.

    I know it's relative but according to Experian I have 999 out of 1000 credit score so I assume this is at least a reasonable indicator that my credit rating is generally good.

    Any help appreciated

  • gasanii
    gasanii Posts: 5 Forumite
    I am in my 60's I have a secure loan of 12000 for 25 years. I am paying £99.34 per month. I have paid one year.
    Can I swich?
    I would like some advice. I know I will not be paying early.
  • ersao
    I've been turned down for a loan by several companies. I think this is partly due to the credit crunch, partly my income. I'm looking to borrow to invest in a family business. Following the advice on this website I'm going to try my own bank and a credit union next, but don't hold out much hope. I'm also thinking of trying to find small investors. Any advice?
  • Faanaraj
    If you want to apply for a cheap online loan then you can always go to, an online loan arrangers.

    It has worked and helped me a lot hope it helps you too :)
  • Nona
    Nona Posts: 10 Forumite
    I wanted to borrow some funds and after looking at Martin's guide for amounts over £5000, I went for Barclays at 7.8%.

    I went through Martins checklist of questions and came up with a good I applied. I was accepted and I was shown on the net that my payments over 3 years would be £249/month at 7.8%. However, when the paperwork came through it showed me paying £303/month at 23.8%!!

    I queried this with Barclays and they said that their interest rates start at 7.8%...but it's then up to the discretion of the bank to offer whatever rate they think is applicable. When I said that I'd printed the online quote showing the £249/month amount, they merely said that wasn't binding.
    What's the point of agreeing an amount online...and then having it changed when the paperwork comes through?

    What makes it worse is that all my existing accounts (including my business account and business savings) are with Barclays!
  • jdavies35
    I took a loan out with Black Horse at the beginning of the year with a interest rate of 21.9%!!!! I was desperate and stupidly took it. They told me after 6 months I could get a better rate, but when I rang them the other day they said because of the credit crunch I would be unable to get a better deal, and in fact they would increase my interest if I tried to lower it!!!!

    I went to A & L to get a loan so I could pay off Black Horse and have a better rate. However, they sent me a letter yesterday saying I was not successful, as I was unlikely to pay the loan and was a risk. I appealed this decision via email and today recieved a call saying I had been approved and the rate offered was 12.5%. What a difference 24 hours can make!!!!

    So it proves that if you appeal they do look into it and can change their mind. So I would say if you are refused and you think or know you have a good credit rating appeal and it may get overturned.

    Good luck:beer:
  • woolfie_2
    hi, i need to get a tenant loan for 50000 and have found these 2 companies which on face value look like they can help. Has any one used them or even heard of them? want to find out how safe they are before giving over personal details.
    ..Tenenat loans for uk. and loans
  • likklegem
    likklegem Posts: 33 Forumite
    First Anniversary Combo Breaker
    Hi all! Help urgently would be helpful here! I've asked repeatedly the Coop for a settlement figure I took out in 2006 under the Career Development loan. Finally it come through the post this morning - just over a grand! That's not right - I took out a £8k loan have made 20 payments (give or take).

    Did not make any payments in the first year (as its a government sponsered loan) and they do not charge interest for the length of the course plus 3 months to sort yourself out. Interest is at 12.9%. I reckon I've paid around £3.5K (repayments are about £185 a month)

    Can I hold them to that settlement figure? Please can anyone who knows let me know ASAP - I've had a moan at them today and want to get my facts right before I shout at them!:D:D:D
  • YIB
    YIB Posts: 192 Forumite
    Hi everyone,

    This is a really simple question I just can't seem to find the answer to! I don't know where else to ask lol

    Basically, how do you know how soon you need to start paying back the loan? Is it right away or do you get a few months before you have to make the first repayment?

  • huwwatkins
    huwwatkins Posts: 56 Forumite
    First Post First Anniversary Combo Breaker
    YIB wrote: »
    Hi everyone,

    This is a really simple question I just can't seem to find the answer to! I don't know where else to ask lol

    Basically, how do you know how soon you need to start paying back the loan? Is it right away or do you get a few months before you have to make the first repayment?


    Usually its one month after the loan is setup.
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