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  • FIRST POST
    • Hammys-Hungry
    • By Hammys-Hungry 13th Jun 18, 4:40 PM
    • 4Posts
    • 0Thanks
    Hammys-Hungry
    Finance Query
    • #1
    • 13th Jun 18, 4:40 PM
    Finance Query 13th Jun 18 at 4:40 PM
    Hi, first time posting here and just looking for some advice.

    I am going to (hopefully) be purchasing an item (not a car) on finance, however I have never applied for finance before and have a few question about if i will get accepted.

    Some information:

    Annual income: 24k
    Item cost: 1215
    Deposit: 255 (more than 10% minimum)
    Monthly repayment: 80 for 12 months

    However, I have an overdraft limit of 1850 on my account and 500 on a joint account.

    When it comes to applying for finance i will have roughly 1500 in my account. So here are my questions.

    1) Should I move 500 into the joint account to clear that OD and have 850 OD on my account (which i will be applying for finance on).
    2) Probability to get accepted.
    3) Is it better to go for 12, 24 or 36 months repayment, in getting accepted for finance?
    4) Should I put more than 255 down?
Page 1
    • MallyGirl
    • By MallyGirl 13th Jun 18, 5:00 PM
    • 2,965 Posts
    • 7,973 Thanks
    MallyGirl
    • #2
    • 13th Jun 18, 5:00 PM
    • #2
    • 13th Jun 18, 5:00 PM
    what are the fees on the ODs
    what is the finance APR?
    choose the shortest option you can afford
    • Hammys-Hungry
    • By Hammys-Hungry 13th Jun 18, 5:09 PM
    • 4 Posts
    • 0 Thanks
    Hammys-Hungry
    • #3
    • 13th Jun 18, 5:09 PM
    • #3
    • 13th Jun 18, 5:09 PM
    Hi,

    Fees on OD are 0 for my account
    1p for every 7 over on joint account
    and its interest free so im assuming 0% APR

    and yeah i was thinking 12 months is best

    Thank you for responding
    • Tarambor
    • By Tarambor 13th Jun 18, 5:17 PM
    • 3,571 Posts
    • 2,647 Thanks
    Tarambor
    • #4
    • 13th Jun 18, 5:17 PM
    • #4
    • 13th Jun 18, 5:17 PM
    If its interest free finance then assuming you can't get at least 5% discount for paying in cash get it on finance even if you have enough money to buy it outright.

    Example:
    Sofa 1500, 0% finance for 12 months. Total price paid over 12 months, 1500.

    1500 in savings account at 5% interest. Total amount that 1500 is worth at the end of 12 months = 1575.

    If you pay the sofa with the 1500 of savings you don't earn the interest on the savings so it has "cost" you 75 extra to buy the sofa using the money in your savings over doing it on interest free finance.

    But as I said, if you can get it cheaper paying in full than the interest on 1500 would earn then do that instead. Ultimately its about making your work as hard as they can for you. Rule of thumb is if the interest on the savings is more than the finance then get the finance, if the interest on the finance is higher than the savings then use the savings.
    • Edi81
    • By Edi81 13th Jun 18, 7:39 PM
    • 530 Posts
    • 489 Thanks
    Edi81
    • #5
    • 13th Jun 18, 7:39 PM
    • #5
    • 13th Jun 18, 7:39 PM
    These types of finance are usually really easy to be accepted for. They are very rarely looked at by a human and are usually automatically accepted or declined.

    Key thing is being on electoral role and no defaults.
    • Hammys-Hungry
    • By Hammys-Hungry 14th Jun 18, 10:22 AM
    • 4 Posts
    • 0 Thanks
    Hammys-Hungry
    • #6
    • 14th Jun 18, 10:22 AM
    • #6
    • 14th Jun 18, 10:22 AM
    I've been on the electoral role in my local area for a couple of years now and what is a default?
    • Tarambor
    • By Tarambor 14th Jun 18, 11:38 AM
    • 3,571 Posts
    • 2,647 Thanks
    Tarambor
    • #7
    • 14th Jun 18, 11:38 AM
    • #7
    • 14th Jun 18, 11:38 AM
    I've been on the electoral role in my local area for a couple of years now and what is a default?
    Originally posted by Hammys-Hungry
    When you've not paid something such as a loan or credit card and continued to not repay the arrears so it goes from a late payment marker to you being in breach of the contract and defaulting.
    • Hammys-Hungry
    • By Hammys-Hungry 14th Jun 18, 12:38 PM
    • 4 Posts
    • 0 Thanks
    Hammys-Hungry
    • #8
    • 14th Jun 18, 12:38 PM
    • #8
    • 14th Jun 18, 12:38 PM
    Thank you for clarifying, I have not had that thankfully
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