Aqua loans?? Good or bad??
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Hi, I am curious to know if in the end they actually gave you the 12% interest rate as per their previous pre approved letter. Did they?0
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I know you said it's a pre-approval loan letter but I'd make sure that it is based on your current circumstances (as opposed to a representative rate). I fear that you may go to apply for said loan and the APR suddenly hikes up leaving you with a credit application on your credit reference (whether this is an issue for you is dependent on personal circumstances).
It does certainly sound better but there's a general dissuasion of borrowing money to pay for borrowed money. It does sound worth looking into though, unless you're expecting a minor windfall (paying off a Credit Card has no associated fees whereas paying off a loan does).
Please, please please, if you do go down this route, don't borrow more than is absolutely required to clear the higher APR debts or start using the Aqua card again!
It does depend on the text of the letter, and you would hope if they are offering these to existing customers, then they are setting the APR appropriately. You get the likes Hitachi finance who market loans at three-point-odd but often still offer loans with double figure APR to those with poorer credit histories.
With changes in the law to persistent debt they are probably aiming to retain customers who never miss payments but usually just pay the minimum before they get classified as in persistent debt.0
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