Loan Offer - Should I accept it?
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DerekFoster
Posts: 3 Newbie
in Loans
I have applied for a loan. The automated credit check was a positive outcome. I was presented an offer on-screen but I have until Tuesday to accept it.
CREDIT AMOUNT: £700
INTEREST RATE: 20% EAR "Goodwill Base Rate" (increase of 10% EAR per default, applied a maximum of once per 3 months.)
LOAN SECURITY: Unsecured Loan
AGREEMENT LENGTH: Until Paid In Full // Interest continues to incur until paid, with a maximum of 24 months. If defaulting, the agreement is reduced to 12 months and fixed re-payments on a chosen date and amount will be demanded.
Does this look like a good value offer? I think the interest rate is much cheaper than a short-term, high-interest equivalent, but I'm wondering what others feel about this.
CREDIT AMOUNT: £700
INTEREST RATE: 20% EAR "Goodwill Base Rate" (increase of 10% EAR per default, applied a maximum of once per 3 months.)
LOAN SECURITY: Unsecured Loan
AGREEMENT LENGTH: Until Paid In Full // Interest continues to incur until paid, with a maximum of 24 months. If defaulting, the agreement is reduced to 12 months and fixed re-payments on a chosen date and amount will be demanded.
Does this look like a good value offer? I think the interest rate is much cheaper than a short-term, high-interest equivalent, but I'm wondering what others feel about this.
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Comments
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It looks horrendous.
What do you need the money for?0 -
Deleted_User wrote: »It looks horrendous.
What do you need the money for?
I found your comment quite amusing. Especially when their punch line is "An Offer You Can't Refuse".
The money is for debt consolidation on Capital One. I have terminated my credit agreement with them over the phone by using extreme colorful language. I have no debts elsewhere. I became debt free in 2015 before I used Capital One card for a £700 advance.0 -
What is the rate on your Cap One card?
How much can you pay to it each month?0 -
Deleted_User wrote: »What is the rate on your Cap One card?
How much can you pay to it each month?
29% APR
I cleared the balance in full. CAP1 reversed the payment and claimed security was to blame. They charged me a default sum.
I told them to ***** and ***** and ********* and ******* to which my credit agreement was terminated and demanded payment in full within 30 days
Oh and the best bit; I have to wait 60 days for funds to return to me now. Original payment method was bank transfer. Need the £700 loan until funds are refunded by CAP1.0 -
Waiting for the money to be returned would be your best option by a long chalk!
Assuming the swearing is the only reason your card was closed down then even with default charges (pay minimum to avoid) you will be quids in.0 -
What loan company offers loans at 20% AER?0
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If this is only a temporary situation, surely an overdraft from your bank is a cheaper and better solution?I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com0
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DerekFoster wrote: »29% APR
I cleared the balance in full. CAP1 reversed the payment and claimed security was to blame. They charged me a default sum.
I told them to ***** and ***** and ********* and ******* to which my credit agreement was terminated and demanded payment in full within 30 days
Oh and the best bit; I have to wait 60 days for funds to return to me now. Original payment method was bank transfer. Need the £700 loan until funds are refunded by CAP1.
Wait until the refund is processed, then pay off the card balance.
You may incur a £15 late payment change, and a small amount of interest, but that is the cheapest, most sensible way to deal with the matter.
You do not have to adhere to their timescales, taking out high interest borrowing, is a knee jerk reaction, that you should avoid.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
No it is not a good rate and I would not go for it. If you default the rates are much higher than 20%.
For future reference doing cash advances on credit cards is not a good way to go.
How come if you borrowed the money in 2015 then it is not repaid yet? Capital one is expensive so have you just been covering interest and charges since then?
I would wait for the refund then pay off the card. 60 days for a refunded payment is not acceptable and I am dumbfounded as to why when you transferred the money by bank transfer it is not showing as a payment on your account. You need proper answers from Capital one. Don't swear at them, it does the very opposite of what you want. You need their help to sort it out so just bite your tongue and if you think their dealing of the matter is unacceptable then contact the ombardsman or make an official complaint.I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.0 -
DerekFoster wrote: »29% APR
I cleared the balance in full. CAP1 reversed the payment and claimed security was to blame. They charged me a default sum.
I told them to ***** and ***** and ********* and ******* to which my credit agreement was terminated and demanded payment in full within 30 days
Oh and the best bit; I have to wait 60 days for funds to return to me now. Original payment method was bank transfer. Need the £700 loan until funds are refunded by CAP1.
Lovely. I'm not surprised your account was terminated. How would you like it if someone spoke to you like that whilst you were just trying to do your job?0
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