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Shopping around for a loan?

My girlfriend is looking to borrow about £5000 to pay off her existing loan, credit card, store cards and have some left over to buy her first car.

She's been accepted for an Egg loan at 7.9% over 7 years, but the repayments are £105 a month, meaing she'll pay back over £8800, almost double the amount borrowed.

Having looked on

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there areseveral better options for her. For example, Lombard Direct are offering a6.6% interest rate (not sure if thats a fixed rate) which is £74 a month,resulting in her paying back approximately £6200. There are several othersimilar offers available too. If she were to try to apply for other loans, will this go against her and affect her credit rating? Its a right catch-22 situation. Does she just accept the first loan acceptance given to her, or does she try and apply for the best one going (but at the risk of being refused)?

I'm tempted to lend her the money myself (if i had it!!)

Thanks for any advice.

Dan Williams.

Reply to
Dan Williams
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Make sure you look at the terms & conditions, e.g. some loans don't let you pay it off early (does she *really* need a 7 year term? That's rather long for just 5k). Also look at credit cards, she may well be able to get a series of cards at 0% interest. And unless she has a strong reason she should stay away from the payment insurance (actually if she does have a strong reason it will probably invalidate the insurance :)

That seems to be two questions ... if she applies for dozens of loans it would be a problem, but three or four should be fine. She may of course be refused, any lender can do that, but if she already has an acceptance from egg it shouldn't affect that. Most lenders are eager to lend to anyone who looks reasonably creditworthy.

Parents? Family members?

One final point, if she clears her credit card with the loan and then fills it up again she will just end up with even more debt ...

Reply to
Stephen Burke

It's a FAQ -

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Reply to
Daytona

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