Best way to borrow £3000

kirkie_2

I am after getting a small loan of £3000 for the purchase of a Motorbike. I am happy to pay this off in 24 months and have a good credit history. I have done a search and found Moneyback Bank can do it for 8.9% and I would be paying £136.50 a month.

I have never heard of them and can anyone tell me what they are like and what is the likelihood of getting that rate?

The other thing is am I doing the right thing by getting a loan or should I be looking at other ways of borrowing the money?

I have a credit card with £950 on it that I never use. I pay £50 a month of and transfer the balance to another 0% card when it is due to expire. I obviously pay the 3% (Or whatever the rate maybe) for the privilege of accepting the card. Should I take a loan out for £4000 and consolidate them or is it not worth it?

Decisions Decisions....

Thanks in advance

baby.boo_2

they are part of alliance and leicester bank. My dad took a loan out with them a couple weeks ago with no problems, rate was originally round 6.3% it went up but only to 7.9%, he has a good credit history

Hope that helps?!

kirkie_2

baby.boo wrote: »

they are part of alliance and leicester bank. My dad took a loan out with them a couple weeks ago with no problems, rate was originally round 6.3% it went up but only to 7.9%, he has a good credit history

Hope that helps?!

Thanks for that. I bank with A&L, but there rate has just shut up as a few weeks ago they were the best on a search engine...

kirkie_2

I have now tried Uswitch and they have claimed that Abbey can do it for 7.9% - £135.17 a month

JimmyTheWig

What sort of credit limits do you get when you apply for the 0% balance transfer cards?
If you can get a £4000 limit on a 0% balance transfer card you should be able to get the loan this way and just pay the 3% (or whatever) fee. Obviously this will only last you a year or so, but you could then transfer again (if there were still 0% deals) or get a loan for a much smaller amount then.

(If you want to go down this route, make sure you know what you are doing, or ask again here.)

brianwilliams_2

Tried Abbey today. Wife working earning 25K (Abbey a/c holder) I'm retired earning 10.5k Credit check both perfect, Abbey offered 12.8% so lower rate obviosly con.

dannynixon

I thought banks only had to give 2/3 of customers the advertised rate?

JimmyTheWig

dannynixon wrote: »

I thought banks only had to give 2/3 of customers the advertised rate?

Yes, but a jump from 7.9% to 12.8% is pretty harsh for someone with a perfect credit check.

kirkie_2

Right folks I have taken the plunge with Moneyback Bank and got the rate 8.9%. I submitted it all on line then got an email saying I had to ring them on an 0845 number. Ring them freephone on 0800 0686611. This number takes you through to the Alliance & Leicester, tell them you are ringing about the loan with Moneyback and they put you through free of charge...

Be warned though that the person you speak to might try you to secure the loan or take out insurance etc. I was lucky as my circumstances didn't need this...