Is 2.9% APR fixed good for a loan??

[Sunshine3013]

Just that really.

Got offered a 10k loan from my bank to buy a car with 2.9% APR fixed. Best deal I could find.

Is this a good deal?

Yes I think that's about as good as you'll get. I can't find anything better than 3.3% for me, maybe you have a better credit report.

Very good. My car loan is 5.9% and I thought that was good.

That’s very good, make sure that’s APR and not per month. A friend of mine got caught out on that last year

Yes, that is good.

Yes it's 2.9% fixed APR

So in total I borrow 10k and pay back £10,400.

It’s bloody brilliant. Snatch their hands off before they change their minds.

Is that just "do you want a loan? We could do even as low as 2.9%" or is it "yes, so after credit check and everything it comes up with 2.9% so congrats"?
If the latter, wow! Great!

Yeah it's the latter I have the paperwork to sign from my bank in front of me with all the loan terms. I've never had a loan before so was unsure. But if you all think it's a great deal.. Then I guess I should take it.

2.8% is about as cheap as you can get for an unsecured loan at the moment, so you're doing OK.

@Sunshine3013

Yeah it's the latter I have the paperwork to sign from my bank in front of me with all the loan terms. I've never had a loan before so was unsure. But if you all think it's a great deal.. Then I guess I should take it.

Be careful. You shouldn't listen to randoms on some random forum if you know nothing about the topic (even though that it's actually correct here though😁) Go to money saving expert website or any financial advice website and have a little read about loans, aprs etc., before you sign anything. It's always worth to do your own research from a reputable source like mse.

You must have the most amazing credit history and score btw. Good job! That's quite a task!

I really want to know your credit score OP

Fab deal! I would take it for a purchase like a car.

My credit score is better than a few years ago because I've been paying off credit cards in full each month for the past few years and had no other debt.. Haven't used my overdraft. Thanks for the input. I wasn't sure as this will be my first personal loan but it seems decent!

It's more than decent. My credit score is in green and I still never got the representative apr in the end.
Kudos to you!
yes, envy😁

That's about as good a rate for a loan as you are going to find.

One other option for cheap borrowing is a balance transfer credit card - basically you buy the car on a card, and then transfer that balance onto another card for a small fee and 0% apr. This does required a decent credit rating and good discipline in paying the card off within the promotional period.

For example, MBNA have a card at the moment that gives 0% interest for 25 months with a 1% fee, so for a 10k loan you'd pay a fee of £100 but you would need to pay it off in 25 months.

It's very good.

There are loans that people can be offered at 49%APR, 99%APR..so paying 2.9% is very good.

How long is the loan for and what repayments do you have per month?

@Sunshine3013

So in total I borrow 10k and pay back £10,400.

If you're paying it back over one year that's correct. If it's over a longer term it'll be more.

No. Not if it's over 3 years

Yes 3 years. £290 a month repayment.

Is it secured or unsecured

Secured and fixed APR

Aaah. Secured makes more sense with this APR. Still good deal imo

@UrAWizHarry

That's about as good a rate for a loan as you are going to find.

One other option for cheap borrowing is a balance transfer credit card - basically you buy the car on a card, and then transfer that balance onto another card for a small fee and 0% apr. This does required a decent credit rating and good discipline in paying the card off within the promotional period.

For example, MBNA have a card at the moment that gives 0% interest for 25 months with a 1% fee, so for a 10k loan you'd pay a fee of £100 but you would need to pay it off in 25 months.

Would you get a 10k limit on a credit card though? Both of mine are 5k.