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Restructuring loans
Hi,
My partner and I took out a loan last year to pay for our wedding. Because his credit was so poor the loan was out purely in my name and I went through my bank and got an interest rate of 9%. Not great but I was off on maternity leave so income wasn't great and I worried about being approved elsewhere (I've never missed a payment on anything so my credit rating is actually good, just with the maternity pay I didn't know if my income would be deemed good enough elsewhere).
I am now back at work full time and my partner and I recently learned how to drive and looked at purchasing a car. Obviously with having young children we wanted a half decent car and took out a £6000 loan for a family car (again, just in my name). I was worried that already having the other loan would get me instant rejection from the bank but tried Tesco bank instead to see the outcome. Accepted straight away with only a 3.4% interest rate!
My question is now, I obviously wish the wedding loan had gone through Tesco with the much lower instest. I have been considering taking a loan out with them, paying off the bank loan and saving myself some money each month, however, would this be advised? And as I have just taken the car loan out how long should I wait before I try to do that? 6 months to a year?
Thank
My partner and I took out a loan last year to pay for our wedding. Because his credit was so poor the loan was out purely in my name and I went through my bank and got an interest rate of 9%. Not great but I was off on maternity leave so income wasn't great and I worried about being approved elsewhere (I've never missed a payment on anything so my credit rating is actually good, just with the maternity pay I didn't know if my income would be deemed good enough elsewhere).
I am now back at work full time and my partner and I recently learned how to drive and looked at purchasing a car. Obviously with having young children we wanted a half decent car and took out a £6000 loan for a family car (again, just in my name). I was worried that already having the other loan would get me instant rejection from the bank but tried Tesco bank instead to see the outcome. Accepted straight away with only a 3.4% interest rate!
My question is now, I obviously wish the wedding loan had gone through Tesco with the much lower instest. I have been considering taking a loan out with them, paying off the bank loan and saving myself some money each month, however, would this be advised? And as I have just taken the car loan out how long should I wait before I try to do that? 6 months to a year?
Thank
0
Comments
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You may not get the lowest rate loan if your paying off another loan as that would be debt consolidation - up to you if you chose another reason for the loan though.
How much is on your first loan to repay?
Your annual salary needs to be at least double the balance of the first loan + second loan + third loan or you may get a decline.
Doubt Tesco will give you another loan though so you may just have to over pay the first loan as much as you can to get it paid off quicker.0
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