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  • FIRST POST
    • claire2018
    • By claire2018 6th Feb 18, 2:35 PM
    • 2Posts
    • 0Thanks
    claire2018
    Loan Rate
    • #1
    • 6th Feb 18, 2:35 PM
    Loan Rate 6th Feb 18 at 2:35 PM
    I have obtained a personal loan quote from TSB which came back @ 4.8% for 10,000.
    1. Is this a good rate?
    2. Should I obtain other quotes or will I be credit scored each time and lower my chances?

    Thanks
Page 1
    • Candyapple
    • By Candyapple 6th Feb 18, 2:54 PM
    • 2,866 Posts
    • 2,194 Thanks
    Candyapple
    • #2
    • 6th Feb 18, 2:54 PM
    • #2
    • 6th Feb 18, 2:54 PM
    It's not the headline rate of 2.9% but it is a decent rate for a 10k personal loan.

    If you apply for other loans yes you do get hard credit searches and you guessed correct, the more hard searches the more you look desperate to lenders and likely be declined.

    You could always try 1 more company as 2 hard searches shouldn't make that much difference:
    https://www.moneysavingexpert.com/eligibility/loans-calculator/
    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.com
    • iolanthe07
    • By iolanthe07 7th Feb 18, 3:51 PM
    • 5,011 Posts
    • 4,706 Thanks
    iolanthe07
    • #3
    • 7th Feb 18, 3:51 PM
    • #3
    • 7th Feb 18, 3:51 PM
    Make sure that the rate is 4.8% APR (not 4.8% flat). This is OK for 10 grand, but as candyapple says, not the best.
    I used to think that good grammar is important, but now I know that good wine is importanter.
    • Grovero
    • By Grovero 7th Mar 18, 3:22 PM
    • 6 Posts
    • 0 Thanks
    Grovero
    • #4
    • 7th Mar 18, 3:22 PM
    • #4
    • 7th Mar 18, 3:22 PM
    Hi there, i have a similar situation. For some time I've been thinking to loan money (personal I think is the best option) for a bigger car, 10k would be the loan.

    I did the credit checks on MSE credit club and experian itself, nothing bad on them, score is excellent 976 or similar the only thing is showing low is the disposable income. Now I know that I can afford the loan because in January I finished to pay for my car I think it was a PCP, it was around 8600 for 4 years with the interest (quite high interest) and bills paid etc plus let's say around 150 minimum left in my account each month, but I think they seem to see disposable income differently.

    I did the eligibility calculator on MSE and it shows me a percentage of 95% for hitachi and on Experian calculator admiral is first with 90% and on that list Hitachi is the 3rd with 80% (Apr is shown between 3.1 and 3.9) So I'm a bit confused what to do with all this information, to try and apply or not. My wife has a better disposable income shown on credit score file but less percentage on the calculator 60% if I remember correct.

    Thanks
    • zx81
    • By zx81 7th Mar 18, 3:26 PM
    • 16,856 Posts
    • 17,875 Thanks
    zx81
    • #5
    • 7th Mar 18, 3:26 PM
    • #5
    • 7th Mar 18, 3:26 PM
    It look like you may have a decent chance of getting something from the eligibility checkers.

    Did you check your actual files though - or just the scores and ratings?
    • Grovero
    • By Grovero 7th Mar 18, 11:10 PM
    • 6 Posts
    • 0 Thanks
    Grovero
    • #6
    • 7th Mar 18, 11:10 PM
    • #6
    • 7th Mar 18, 11:10 PM
    On mse credit club that I checked my file everything is fine..on experian itself no because you have to pay (well I know it's free first time) but I will check anyway .

    How it looks now what's the chance of getting the loan for a good APR between 3,5 and 4..something?? If my file is OK..
    • dealer wins
    • By dealer wins 8th Mar 18, 12:34 AM
    • 5,778 Posts
    • 11,010 Thanks
    dealer wins
    • #7
    • 8th Mar 18, 12:34 AM
    • #7
    • 8th Mar 18, 12:34 AM
    Buying a depresiating asset by borrowing money, I never understand why people do this depriving themselves of so much money overall!
    Choose life
    • Grovero
    • By Grovero 8th Mar 18, 1:51 AM
    • 6 Posts
    • 0 Thanks
    Grovero
    • #8
    • 8th Mar 18, 1:51 AM
    • #8
    • 8th Mar 18, 1:51 AM
    dealer wins Don't tell me you never bought a car (asset like you say) over ..let's say 8k, no?
    Depriving myself ? Yes you are right ...we all spend, some people spend100- 150 of food a week and 20% goes to bin and so on , you get my point.

    I understand your opinion, I do...I've been thinking and researching for the last 3 months at least.

    Anyway...thanks
    • dealer wins
    • By dealer wins 8th Mar 18, 9:47 AM
    • 5,778 Posts
    • 11,010 Thanks
    dealer wins
    • #9
    • 8th Mar 18, 9:47 AM
    • #9
    • 8th Mar 18, 9:47 AM
    dealer wins Don't tell me you never bought a car (asset like you say) over ..let's say 8k, no?
    Depriving myself ? Yes you are right ...we all spend, some people spend100- 150 of food a week and 20% goes to bin and so on , you get my point.

    I understand your opinion, I do...I've been thinking and researching for the last 3 months at least.

    Anyway...thanks
    Originally posted by Grovero
    I have, but not by borrowing money at a further cost to my wealth and lifestyle.
    Choose life
    • ZZL
    • By ZZL 8th Mar 18, 10:22 AM
    • 14 Posts
    • 1 Thanks
    ZZL
    Also try approaching you own bank, for instance I'm with Nationwide and they quote you for the actual rate they would offer you if you applied, without leaving a footprint on your credit file

    This was all done on my online banking
    • DCFC79
    • By DCFC79 8th Mar 18, 10:23 AM
    • 31,690 Posts
    • 19,986 Thanks
    DCFC79
    dealer wins Don't tell me you never bought a car (asset like you say) over ..let's say 8k, no?
    Depriving myself ? Yes you are right ...we all spend, some people spend100- 150 of food a week and 20% goes to bin and so on , you get my point.

    I understand your opinion, I do...I've been thinking and researching for the last 3 months at least.

    Anyway...thanks
    Originally posted by Grovero
    I have and I kind of regret doing it.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • MEM62
    • By MEM62 8th Mar 18, 10:38 AM
    • 1,575 Posts
    • 1,196 Thanks
    MEM62
    dealer wins Don't tell me you never bought a car (asset like you say) over ..let's say 8k, no?
    Depriving myself ? Yes you are right ...we all spend, some people spend100- 150 of food a week and 20% goes to bin and so on , you get my point.

    I understand your opinion, I do...I've been thinking and researching for the last 3 months at least.

    Anyway...thanks
    Originally posted by Grovero
    dealer wins Has a point. The value of a car, particularly a new one, drops like a stone. If you buy it using borrowed money you are taking a double hit of depreciation and interest. If everyone added up the true cost of this over the lifetime of the car many would make different decisions. This is compounded by the fact that the losses are forgotten when moving onto the next vehicle as 'shiny new car syndrome' takes over and financial sensibility takes a back seat - pun intended.

    Buying a car on finance is rarely the best financial decision. You can do as many months research as you like and it won't change that.
    • Akahotpot
    • By Akahotpot 8th Mar 18, 3:58 PM
    • 137 Posts
    • 89 Thanks
    Akahotpot
    We cant all buy 2nd hand the market would collapse
    • Grovero
    • By Grovero 8th Mar 18, 7:10 PM
    • 6 Posts
    • 0 Thanks
    Grovero
    You all assumed that is new but is not is 2 to 4 years old the car, i will never buy a new one only after the big chunk of the value drops in those years.
    • vacheron
    • By vacheron 8th Mar 18, 7:35 PM
    • 825 Posts
    • 760 Thanks
    vacheron
    dealer wins Don't tell me you never bought a car (asset like you say) over ..let's say 8k, no?
    Depriving myself ? Yes you are right ...we all spend, some people spend100- 150 of food a week and 20% goes to bin and so on , you get my point.

    I understand your opinion, I do...I've been thinking and researching for the last 3 months at least.

    Anyway...thanks
    Originally posted by Grovero
    I did!

    In 1997 when I was 23 I bought a 14K expensive and impractical used car with the help of my first (and only ever) personal loan to the tune of 10K at 6.9% interest over 3 years.

    I sold the car nearly 10 years later for 1/10th of what I paid not counting the interest.

    Would I do that now? no.
    Do I regret it? Not for one second.

    Not a very MSE response (and no MSE back then either!) but it is the 100% truth.
    Last edited by vacheron; 08-03-2018 at 7:38 PM.
    The rich buy assets.
    The poor only have expenses.
    The middle class buy liabilities they think are assets.
    Robert T. Kiyosaki
    • Grovero
    • By Grovero 9th Mar 18, 1:55 AM
    • 6 Posts
    • 0 Thanks
    Grovero
    I have a small city car(used car) it has the power of one horse and is just not practical for our future family , that decision I regret a bit because I should have thought about it more.

    zzl as far as I know the bank will operate the same like the other lenders, you still do a quick search and will show you the best APR etc but when you apply you will still have surprises like any other applications no? Why will they be different?
    • nic_c
    • By nic_c 9th Mar 18, 10:18 AM
    • 1,459 Posts
    • 799 Thanks
    nic_c
    On mse credit club that I checked my file everything is fine..on experian itself no because you have to pay (well I know it's free first time) but I will check anyway .

    How it looks now what's the chance of getting the loan for a good APR between 3,5 and 4..something?? If my file is OK..
    Originally posted by Grovero
    No need to go direct with experian trial as the MSE CC uses experian and gives you your full report that way.

    If you need a bigger car and don't have the money, and borrowing is the only way to afford it then arranging the finance yourself rather than using a dealers is the best option.

    To those bemoaning buying a depreciating asset, do you not have any hobbies you put money into, or go out socialising spending money on alcohol that is money down the drain, or out to a restaurant when you could cook cheaper at home.

    Is the assumption this is a brand new car, at 10K are we sure as its a bigger car like hatchback or MPV then it could more likely be second hand car.
    • Grovero
    • By Grovero 9th Mar 18, 11:34 AM
    • 6 Posts
    • 0 Thanks
    Grovero
    No need to go direct with experian trial as the MSE CC uses experian and gives you your full report that way.
    Originally posted by nic_c
    That's what I thought.
    If you need a bigger car and don't have the money, and borrowing is the only way to afford it then arranging the finance yourself rather than using a dealers is the best option.
    To those bemoaning buying a depreciating asset, do you not have any hobbies you put money into, or go out socialising spending money on alcohol that is money down the drain, or out to a restaurant when you could cook cheaper at home.
    Is the assumption this is a brand new car, at 10K are we sure as its a bigger car like hatchback or MPV then it could more likely be second hand car.
    Originally posted by nic_c
    You kind of described me with things like draining your money on restaurants,pub or expensive hobbies etc. I mean we go out and all that but not in a manner that you spend 200+/m where I will put it towards a loan or something like that and have a more confort and practical way of going places to visit etc with the family.

    It will be a second hand one definitely...let's say a skoda octavia, so yeah nothing fancy
    Will try in a month or two to apply for loan and see what they will come up with, as now we are in a process of getting our mortgage( a lot cheaper then the actual rent) and perhaps will make a difference when applying.
    Will the credit file be updated quite quick after the completion of the house purchase??

    Thank you for the input.
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