Cheap Loans: How to get your lowest possible rate Discussion Area

A question about : Cheap Loans: How to get your lowest possible rate Discussion Area

Hi,

I currently have a loan with Northern Rock and wanted to extend it in order to upgrade my car due to needing something bigger for a new arrival without increasing my monthly outgoings too much, obviously Northern Rock are no longer offering loans and so I will need to change to another company.

What I'm wondering is whether I am likely to experience any problems with my application due to the amount I already have borrowed even though I intend to settle it with the new loan or should I just look at a separate loan for the amount of money I need.

A separate loan would be affordable due to another outgoing ending shortly but would prefer to keep this extra cash for any future needs of the little one if possible.

I know it's relative but according to Experian I have 999 out of 1000 credit score so I assume this is at least a reasonable indicator that my credit rating is generally good.

Any help appreciated

Jamie

Best answers:

• Hi,
  I currently have a loan with Northern Rock and wanted to extend it in order to upgrade my car due to needing something bigger for a new arrival without increasing my monthly outgoings too much, obviously Northern Rock are no longer offering loans and so I will need to change to another company.
  What I'm wondering is whether I am likely to experience any problems with my application due to the amount I already have borrowed even though I intend to settle it with the new loan or should I just look at a separate loan for the amount of money I need.
  A separate loan would be affordable due to another outgoing ending shortly but would prefer to keep this extra cash for any future needs of the little one if possible.
  I know it's relative but according to Experian I have 999 out of 1000 credit score so I assume this is at least a reasonable indicator that my credit rating is generally good.
  Any help appreciated
  Jamie
• I am in my 60's I have a secure loan of 12000 for 25 years. I am paying £99.34 per month. I have paid one year.
  Can I swich?
  I would like some advice. I know I will not be paying early.
• I've been turned down for a loan by several companies. I think this is partly due to the credit crunch, partly my income. I'm looking to borrow to invest in a family business. Following the advice on this website I'm going to try my own bank and a credit union next, but don't hold out much hope. I'm also thinking of trying to find small investors. Any advice?
• If you want to apply for a cheap online loan then you can always go to allaboutloans.co.uk, an online loan arrangers.
  It has worked and helped me a lot hope it helps you too
• I wanted to borrow some funds and after looking at Martin's guide for amounts over Ј5000, I went for Barclays at 7.8%.
  I went through Martins checklist of questions and came up with a good score...so I applied. I was accepted and I was shown on the net that my payments over 3 years would be Ј249/month at 7.8%. However, when the paperwork came through it showed me paying Ј303/month at 23.8%!!
  I queried this with Barclays and they said that their interest rates start at 7.8%...but it's then up to the discretion of the bank to offer whatever rate they think is applicable. When I said that I'd printed the online quote showing the Ј249/month amount, they merely said that wasn't binding.
  What's the point of agreeing an amount online...and then having it changed when the paperwork comes through?
  What makes it worse is that all my existing accounts (including my business account and business savings) are with Barclays!
• I took a loan out with Black Horse at the beginning of the year with a interest rate of 21.9%!!!! I was desperate and stupidly took it. They told me after 6 months I could get a better rate, but when I rang them the other day they said because of the credit crunch I would be unable to get a better deal, and in fact they would increase my interest if I tried to lower it!!!!
  I went to A & L to get a loan so I could pay off Black Horse and have a better rate. However, they sent me a letter yesterday saying I was not successful, as I was unlikely to pay the loan and was a risk. I appealed this decision via email and today recieved a call saying I had been approved and the rate offered was 12.5%. What a difference 24 hours can make!!!!
  So it proves that if you appeal they do look into it and can change their mind. So I would say if you are refused and you think or know you have a good credit rating appeal and it may get overturned.
  Good luck
• hi, i need to get a tenant loan for 50000 and have found these 2 companies which on face value look like they can help. Has any one used them or even heard of them? want to find out how safe they are before giving over personal details.
  ..Tenenat loans for uk. and loans co.uk
• Hi all! Help urgently would be helpful here! I've asked repeatedly the Coop for a settlement figure I took out in 2006 under the Career Development loan. Finally it come through the post this morning - just over a grand! That's not right - I took out a Ј8k loan have made 20 payments (give or take).
  Did not make any payments in the first year (as its a government sponsered loan) and they do not charge interest for the length of the course plus 3 months to sort yourself out. Interest is at 12.9%. I reckon I've paid around Ј3.5K (repayments are about Ј185 a month)
  Can I hold them to that settlement figure? Please can anyone who knows let me know ASAP - I've had a moan at them today and want to get my facts right before I shout at them!
• Hi everyone,
  This is a really simple question I just can't seem to find the answer to! I don't know where else to ask lol
  Basically, how do you know how soon you need to start paying back the loan? Is it right away or do you get a few months before you have to make the first repayment?
  Thanks!
• I would send a covering letter with a cheque of the amount they say and oin the letter state that in settlement of the account .... based on their settlement figure in their letter dated ... I enclose a cheque for the settlement figure. Please confirm by letter that this account has been settled and is now closed.
  Assuming no problems, think yourself lucky and don't rock the boat !
  Obvioysly up to you but I think that's wha I'd do.
  If there is a problem you'll soon know about it
• Hi guys basically i need some help, i need a loan for Ј4000 i can repay this within no longer than three months who's the best company to go with the least interest etc.
  I am starting up my own pub and basically i need the money to start up with any help would be grately appreciated
  Thankyou
  joanne
• I would like some help.
  I have currently got 2 secured loans and one Unsecured. The secured loans are with welcome finance and 1 with Picture. Totalling around 45k with in total is around £630 per month. I also have a abbey loan for £15k in which i am paying around £350 per mth. I currently have a mortgage but cannot get further advance due to bad credit. I would like to get everything in 1 monthly affordable payment. I cannot seem to be able to talk to anyone and struggle through each day. I seem to be struggling with payments all the time and need some advice.
• Hi there,
  I need a loan of Ј5k and am struggling to get one anywhere (I have tried my bank and another bank). I have the highest credit score but I think I am getting declined as Equifax do not have me registered on the electoral role long enough. I never miss a payment, zero balance credit cards, no defaults, CCJs, etc
  Does anyone have any ideas what I could do?
• I'd like to refinance the debt I have to lower rates. I've recently built this up on overdrafts and credit cards (all at close to 20% APR) whilst I was looking for a job. I've found a new role but it's a 6 month probationary contract and I'm not being paid a full salary yet.
  The problem is that my credit files show me close to my borrowing limits. I also have a CCJ, but it only shows up on my Equifax report. I have a few small black marks for missed payments in the last 12m but no serious issues like defaults.
  I recently applied for an Abbey National balance transfer credit card, on the basis that a) they only use Experian and b) they're owned by Santander which hasn't had major problems throughout the credit crisis. Unfortunately they rejected me on 'credit scoring' (no further details given).
  I've also applied to Natwest for a loan (APR came out slightly better at 15%) which they approved but then asked for proof of income. I had optimistically used my previous salary. So no go there.
  Any ideas how I can refinance my debt? Are any credit card firms still offering generous balance transfers for someone in my position? Am I better off applying for a loan and paying some interest? Would it help if I took out any old other credit card and didn't use the balance - so I have a higher % of unused credit? Or will this hurt me?
  Any advice appreciated even if anecdotal, eg "I was in a similar situation recently and this is how I solved it".
  Thanks in advance!
• Having read the page about ways and means of acquiring money for a loan through a card, I am lost. It recommended having egg money in order to facilitate switching the monies. But egg money is not available to be able to follow this switch. I was interested to obviously get the cheapest option for interest to keep costs down. I am after about Ј4000. Should I just opt for a Bank Loan and if so , what is my best bet for lowest Interest ?
• Just been offered a flexible loan from natwest at 7.5% but the rate is variable! I'm now a bit worried about taking them up on the offer? I'm using it to replace my existing loan at 10.2% fixed. Old loan was 15700 inc interest over 5 years and they've settled that after 16 months at 9700 and cleared my od which brings the new amount to 11300. Old payment was 256 and new payment 135 over ten years but if I pay the old amount then loan will be cleared after 4 years IF the interest rate doesn't increase! Any suggestions welcome??