PDA

View Full Version : Loans



tiger
21st December 2006, 09:17
We have a flexible loan from Cahoot. They have just bumped the interest up. It went up to 9.4% on 6th Dec and then 14.9% on 19th December.
I am thinking of going for a fixed rate loan. If I shop around, using the Cashback sites, will that affect my credit rating? Would it just be best to apply for only one? OH has just become self employed again after working for someone else for three years, so we have no proof of his income.

marmaliser
21st December 2006, 09:20
After reading a bit on MSE it seems that BarclayCard Loans and Northern Rock are the cheapest however you need to be realy carefull with NR as they will quote rates based on taking Insurance out. If you don't want the insurance the loan goes up or you can't have it.

tiger
21st December 2006, 09:34
Thanks marmaliser.

Filthy Monkey
21st December 2006, 10:05
Tiger, have you tried contacting them and asking them to reduce the rate? Threaten to move the loan elsewhere. This often works... I had a similar situation where they doubled the interest rate. I had a fight with the first idiot I spoke to and they refused to do anything, but their supervisor changed it immediately for me. Always worth a try.

tiger
21st December 2006, 10:13
Thanks FM. I never thought of that.
It's a very good idea and nothing to lose except a bit of time and a phone call.
Will rep you.

boffin
21st December 2006, 10:15
tiger, I use ft.com (http://www.ft.com/yourmoney/banking) for comparing loans, mortgages, bank accounts etc. They've got good search tools.

DebbieE
21st December 2006, 10:16
Only apply for 1 loan - it will affect your credit rating if you apply for more. Have a look on moneysupermarket for the best rates. If u can wait til the New Year, most banks usually have reduced rates on.

You may find it easier to apply through your bank. I know at my work, if you are an existing customer it is a lot easier to apply & you may have pre-approved limits without having to prove income etc

Or have you looked at Tesco or Egg?

tiger
21st December 2006, 10:16
Thanks boffin. I'll take a look.
Rep point for you as well.

gobbyash
21st December 2006, 10:22
When I went for my car loan, I used Tesco and the rate was attractive - agreed in principle there and then but then declined due to only being 7 months self-employed at the time.

If you use them, don't mention the self employed part, especially if it has only just happened.

There also used to be a further 0.5% discount code somewhere on their website.

gobbyash

boffin
21st December 2006, 15:10
Thanks boffin. I'll take a look.
Rep point for you as well.

Thanks tiger...it's nice to be appreciated!


Only apply for 1 loan - it will affect your credit rating if you apply for more. Have a look on moneysupermarket for the best rates. If u can wait til the New Year, most banks usually have reduced rates on.

You may find it easier to apply through your bank. I know at my work, if you are an existing customer it is a lot easier to apply & you may have pre-approved limits without having to prove income etc

Or have you looked at Tesco or Egg?

ft.com uses moneysupermarket.com. If you have a mortgage the other thing you might consider is remortgaging. I remortgage every couple of years to get the best deal and raise money for home improvements. Rates are generally a couple of percent less than the cheapest loan.

penfold
21st December 2006, 20:55
we took a loan out with Northern Rock and, despite not taking out the insurance, got a rate of 5.9%, which I believe was their headline rate at the time. Very fast and efficient, even when we redeemed when we remortgaged.

Have also taken one out with Tesco in the past. The rate was good but the process was kind of long and drawn out.