Aqua loans?? Good or bad??

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urb
urb Posts: 25 Forumite
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I currently owe £4000 on my Aqua card and the APR is 39.9%. I have been repaying as much as I can monthly which has been reducing my balance.

Today I have received a pre-approval loan letter from Aqua for up to 7,500 at a rate of 12.5%

My credit score is currently poor so I have no hope to get a loan elsewhere...... I am tempted to take up this offer to clear my CC's and pay them off faster, but I feel like its too good to be true. And I've never heard or Aqua loans nor can I find much info about them online. Any advice would be great.
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  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    They're fine. If it's the best you can do, take it.

    However your credit score isn't a guide to your credit worthiness, so try an eligibility checker to see if you have other options.
  • Willing2Learn
    Willing2Learn Posts: 6,294 Forumite
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    urb wrote: »
    I currently owe £4000 on my Aqua card and the APR is 39.9%. I have been repaying as much as I can monthly which has been reducing my balance.

    Today I have received a pre-approval loan letter from Aqua for up to 7,500 at a rate of 12.5%
    It is a consolidation loan. It would only be a good idea if you have good financial self-discipline. Without discipline, it would be easy to go spending on the card and rebuild the Aqua card balance. Then you could end up owing twice the money and starting to struggle....
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • MallyGirl
    MallyGirl Posts: 6,626 Senior Ambassador
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    Providing you only borrow the £4000 you need and actually do set the term length so that you actually pay off faster then it would save you money. You must be disciplined to not just build up another balance on the credit card though.
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  • urb
    urb Posts: 25 Forumite
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    Willing2Learn wrote: »
    It is a consolidation loan. It would only be a good idea if you have good financial self-discipline. Without discipline, it would be easy to go spending on the card and rebuild the Aqua card balance. Then you could end up owing twice the money and starting to struggle....

    Once I pay off the Aqua card it's going into the bin, I will never make the same mistake by spending on such cards ever again! I'm thinking hard about this loan and keep convincing myself I'm either missing out on something that doesn't make it as good as it seems or it's a trap to keep me in debt with the same company. I don't understand why they'd offer me a loan with cheaper APR when I currently am paying far more APR on a CC debt. Unless they hope I pay off the card and then fall back into same trap....confusing lol
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    It's part of a risk based retention strategy. They deal with customers who may either crash and burn, or improve and go elsewhere.

    Neither is in their interest.
  • Exodi
    Exodi Posts: 2,872 Forumite
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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!
    Know what you don't
  • Willing2Learn
    Willing2Learn Posts: 6,294 Forumite
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    edited 14 November 2018 at 5:25PM
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    Deleted_User wrote: »
    … so try an eligibility checker to see if you have other options.
    And if you are going try a loan eligibility checker, then you may as well check what is available on balance transfer card offers. It may be that you could get a far better deal (0% plus fees)...
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • urb
    urb Posts: 25 Forumite
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    Willing2Learn wrote: »
    And if you are going try a loan eligibility checker, then you may as well check what is available on balance transfer card offers. It may be that you could get a far better deal (0% plus fees)...

    My Credit score is junk so there aren't any nice offers out there for me. I am going to apply for the loan after working out my finances. According to the lady I spoke with on the phone if I need to pass their affordability checker first, which doesn't leave a mark on my credit score, only then will they allow me to submit an application for the loan. I don't think I'll get a better offer than this for a long time.
  • DCFC79
    DCFC79 Posts: 40,598 Forumite
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    urb wrote: »
    My Credit score is junk so there aren't any nice offers out there for me. I am going to apply for the loan after working out my finances. According to the lady I spoke with on the phone if I need to pass their affordability checker first, which doesn't leave a mark on my credit score, only then will they allow me to submit an application for the loan. I don't think I'll get a better offer than this for a long time.


    Just because your score is junk it doesnt mean no offers, lenders see your history.
  • Craig1981
    Craig1981 Posts: 769 Forumite
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    i get these pre approval loan invites form Aqua every two weeks, i have no interest in it, but yes, it is legit. i also get balance and money transfer offers form them (looks like they trying to extend their credit in other forms like mainstream lenders)

    it makes sense to save you money. you should have a look as to why your card is maxed out, what you are currently paying on there, and what your loan repayments will be. if you using the card to make end meet, and this is the reason for having the card at max, you need to look at your budget.
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