Jamesy Posted March 6, 2015 Share Posted March 6, 2015 Hi guys quick question regarding personal loans i need to ask: Would you be better off having say 2 loans of around £9,000 each at a rate of around 3.9%..... OR..... Better to get one loan of £18,000 at 5.8% Or does it not make much difference? Quote Link to comment Share on other sites More sharing options...
ManwithSupra Posted March 6, 2015 Share Posted March 6, 2015 Probably not much difference in themselves, however if you end up paying them off early you may find you end up paying more to settle two accounts early than just the one (early settlement fee's) Quote Link to comment Share on other sites More sharing options...
mattdavies Posted March 6, 2015 Share Posted March 6, 2015 Well 3.9% of 9000 is 351 (x2) = 702 5.8% of 18000 is 1044 So i would say 2 smaller loans Quote Link to comment Share on other sites More sharing options...
Graham1984 Posted March 6, 2015 Share Posted March 6, 2015 Neither, try and avoid them if possible Buying anything nice Jamesy's? Quote Link to comment Share on other sites More sharing options...
jamesmark Posted March 6, 2015 Share Posted March 6, 2015 Depends on how long you are taking the loans over, also 3.9% is not the cheapest. £9k over 5 years @ 3.6% = £163.90 £18k over 5 years @ 4.1% = £331.73 The other factor is your credit rating will have to be good, as each loan will reduce it. You may find it easier to get one big one than 2 small ones. Although I would opt for 2 Small ones. Quote Link to comment Share on other sites More sharing options...
Kendo11 Posted March 6, 2015 Share Posted March 6, 2015 One loan with one lender is always best. Quote Link to comment Share on other sites More sharing options...
SPG Posted March 6, 2015 Share Posted March 6, 2015 Depends on how long you are taking the loans over, also 3.9% is not the cheapest. £9k over 5 years @ 3.6% = £163.90 £18k over 5 years @ 4.1% = £331.73 The other factor is your credit rating will have to be good, as each loan will reduce it. You may find it easier to get one big one than 2 small ones. Although I would opt for 2 Small ones. Quote Link to comment Share on other sites More sharing options...
tooquicktostop Posted March 6, 2015 Share Posted March 6, 2015 Sell an asset, even cheaper Quote Link to comment Share on other sites More sharing options...
Jamesy Posted March 6, 2015 Author Share Posted March 6, 2015 Ok, bit of a mixed bag! Thanks guys. Quote Link to comment Share on other sites More sharing options...
Abz Posted March 7, 2015 Share Posted March 7, 2015 You should be able to get a better deal on one larger loan and a lower rate too. Have a chat with a business manager from your bank about it. Quote Link to comment Share on other sites More sharing options...
Jamesy Posted March 9, 2015 Author Share Posted March 9, 2015 Thanks for the input fellas. Quote Link to comment Share on other sites More sharing options...
Chris Wilson Posted March 9, 2015 Share Posted March 9, 2015 Sell an asset, even cheaper Not his hair, surely not his hair? Quote Link to comment Share on other sites More sharing options...
stevie_b Posted March 9, 2015 Share Posted March 9, 2015 Do you mean in terms of what you repay if it all goes by the book, or are you thinking about some other considerations (e.g. early repayment penalties, late repayment penalties, administrative hassle, etc)? Quote Link to comment Share on other sites More sharing options...
Rummy Posted March 9, 2015 Share Posted March 9, 2015 I was reading about the 3.6 apr loans and apparently only 51% or something of people get it at that rate. The rest sign up for the 3.6 and get accepted at about 20% only. When you then argue and turn it down as it's not the apr you wanted, the application still goes on your credit file making it harder for you to get another loan or some such. This info was from that money supermarket guy iirc Quote Link to comment Share on other sites More sharing options...
jamesmark Posted March 9, 2015 Share Posted March 9, 2015 I was reading about the 3.6 apr loans and apparently only 51% or something of people get it at that rate. The rest sign up for the 3.6 and get accepted at about 20% only. When you then argue and turn it down as it's not the apr you wanted, the application still goes on your credit file making it harder for you to get another loan or some such. This info was from that money supermarket guy iirc This scenario would happen only when you apply and you have poor a credit rating. It is unbelievable the amount of people that never seem to want to sort their credit history or even knew they had too. Especially when the 2 biggest CRA's give first time customers a 30 day free trial, which is more than enough to sort your credit history out. Also in this case you can request the lender to remove the credit search footprint from your credit file. Alternatively if you obtain your credit file the CRA can remove it for you after contacting the lender. Quote Link to comment Share on other sites More sharing options...
Kendo11 Posted March 9, 2015 Share Posted March 9, 2015 All of the lenders (providing you speak to them rather than do it electronically) can give you a relatively good idea of whether you'll be accepted first and for roughly what rate, before an actual application is logged onto your file. Quote Link to comment Share on other sites More sharing options...
j_jza80 Posted March 9, 2015 Share Posted March 9, 2015 As Abz said, a single large loan should in theory come with lower interest. If nothing else, at least it cuts down on correspondence. If you were lending or investing, then obviously splitting it up can be a way of potentially mitigating any losses. Quote Link to comment Share on other sites More sharing options...
Hitbox Junkie Posted March 11, 2015 Share Posted March 11, 2015 I spoke to my bank they said id get a good rate. I didnt 16.1% apr but was still.with in my monthly pay back.budget i had set so wasnt too bad Quote Link to comment Share on other sites More sharing options...
jamesmark Posted March 11, 2015 Share Posted March 11, 2015 I spoke to my bank they said id get a good rate. I didnt 16.1% apr but was still.with in my monthly pay back.budget i had set so wasnt too bad That is because unlike what was said, banks cannot actually tell you what rate you will get till they actually do a credit check on you to establish your credit worthiness. Only time they would be able to tell you what rate you will get is if they do not credit vet you. If you got a rate of 16.1%APR that would indicate 100% that your credit score is very poor, I would suggest getting them from the big three and sorting it out. Quote Link to comment Share on other sites More sharing options...
Kendo11 Posted March 11, 2015 Share Posted March 11, 2015 16.1 isn't brilliant, I'd rethink before accepting that nate. Quote Link to comment Share on other sites More sharing options...
Jamesy Posted March 11, 2015 Author Share Posted March 11, 2015 16.1. Jeeeez. Tesco is 3.9 ish Quote Link to comment Share on other sites More sharing options...
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