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?

Wait, it's secured?

If it is definately secured, please have a very careful think about the risks of buying a car with a loan secured against your home, and consider taking out an unsecured loan if at all possible.

"Would you get a 10k limit on a credit card though?"

Depends on your credit score. Mine is pretty much spotless and I have a card with a 15k credit limit that I have never spent a penny on and have purely for emergencies. The suggestion was based on the assumption that if the OP can get an unsecured loan for 10k at market leading rates then they would have a decent shot at getting a card with a high enough limit.

The recent post saying the loan is secured though changes that and I would definately not go down this route if the OP is not very financially savvy.

Sorry its unsecured. I didn't understand what that meant, but it's unsecured.

Definitely unsecured. My bank offered it to me through my credit rating and history. Not secured against anything.

Ok, that's good. Secured loans are generally a very bad idea unless you have no other option.

In that case, 2.8% is pretty much market leading at the moment.

@Exhausteddog Some people will get credit limits like that. I got a 0% purchase card in 2019 with the intention of buying a car so needed a 10k limit. I applied and was given a 2k limit. I emailed them and explained that I only got the card to buy the car and requested they upped my limit to 10k. They were resitant but I was firm with them so they did a credit check for the higher limit and it passed so I did end up buying the car using my new limit and paid it off within the 0% period.

You need to understand the loan. It's worrying you didn't know what secured and unswcured means. As I said, go to MSE website and check about loans

Yes I'll go and take a look at MSE. It's my first loan that's why, but I'll definitely read the small print before I sign and make a final decision.

[quote Curiosity101]@Exhausteddog Some people will get credit limits like that. I got a 0% purchase card in 2019 with the intention of buying a car so needed a 10k limit. I applied and was given a 2k limit. I emailed them and explained that I only got the card to buy the car and requested they upped my limit to 10k. They were resitant but I was firm with them so they did a credit check for the higher limit and it passed so I did end up buying the car using my new limit and paid it off within the 0% period.[/quote]
Thats good to know. DH opened a 0% credit card to buy a season ticket but he could only get one with 2.5k and the season ticket is just over 4k so he put the other rest on another credit card which we will pay off first.
But worth calling them next time as i think he would pass a credit check.

@Sunshine3013

Yes I'll go and take a look at MSE. It's my first loan that's why, but I'll definitely read the small print before I sign and make a final decision.

Biggest thing you need to check is what happens if you can't pay it off.

As it's unsecured, that's a good thing.

Check the interest rate is fixed.
Can you take a payment holiday if need be?

And obviously, can you afford the repayments for 3 years.

It's a very good APR though.

Seems an excellent deal to me. Just hope the car is reliable and you really do need it.