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Original poster

Offered a loan. Am I being ripped off?

47 replies

emmarighty · 13/07/2019 00:12

Hello,

I was offered a loan tonight but I'm worried that I'm making the right decision. I need 5000 found a website called realrates.com on google that's said I'm preapproved for 13.1%. Is that good? Is this a legit website?

I tried money supermarket but they declined me!!! But I don't want to take money from a website I've never heard of.

Any advice? Should I go elsewhere?

OP posts:

serenadoundy · 13/07/2019 00:59

So I don't think I've been applying for loans have I?

Please, step away.

Honestly OP you need to stop. Do you have anyone in RL that can help you with this?

Original poster

emmarighty · 13/07/2019 01:00

Serena I thought a loan might be a good option instead of a credit card as my friend told me to consolidate everything into one repayment to make it easier

OP posts:

serenadoundy · 13/07/2019 01:01

2 payments V 1 payment?

Not really worth taking more debt on for. Your friend is an idiot. Don't listen. Pay your cardsZ. Forget the load.

Pipandmum · 13/07/2019 01:01

You should check your credit score and find out why you are getting declined. If you are comfortable why don’t you concentrate on getting rid of your existing debt before taking on another at a high interest rate?

Original poster

emmarighty · 13/07/2019 01:03

Mydcaremarvel so that's a good thing yeah? Think I need to stop worrying and think about all this a little more. Think I'm more confused now than before. I was offered a loan but I'm told to stop applying but you're saying it's ok now?

OP posts:

serenadoundy · 13/07/2019 01:05

You need to be clear about whether you were declined by these banks or not OP?

You must know?

wobytide · 13/07/2019 01:06

Real rates is a genuine site and the rates are higher as they try to be more transparent.

That said when you don't know what you are consolidating taking out more credit seems a bad idea especially if you're own bank aren't willing to offer you a loan. Take a break. Look at it again tomorrow to understand what you are doing

MyDcAreMarvel · 13/07/2019 01:06

I mean it’s good that there were soft searches as it won’t have affected your credit rating.
You would therefore probably still be eligible for the loan you were offered, however I would not take the loan.
Better to pay of the cards and sometime this week do some soft searches for 0% balance transfer cards.

Original poster

emmarighty · 13/07/2019 01:06

Ok thanks Serena

OP posts:

Original poster

emmarighty · 13/07/2019 01:09

Wobytide what do you mean more transparent? At least I feel better about using a "genuine" website now

OP posts:

MyDcAreMarvel · 13/07/2019 01:10

You get the actual rate for not a rate only a certain percentage of people get.

MyDcAreMarvel · 13/07/2019 01:10

*for the loan

BigBadBarryatemyboat · 13/07/2019 07:22

OP the more you apply the less chance you have of being accepted as you will look desperate which will put lenders off.

What interest rate are you paying on your existing credit card debt? It may be more prudent to apply for a balance transfer credit card with a 0% interest period. But with a lot of applications in a short space of time it may also be rejected.

Get yourself over to the money saving expert forum and read some of the posts there. Also do the eligibility calculator on that website as it might give you an idea on which credit card you are eligible for. I would look at MBNA, Virgin Money and Barclaycard for long 0% promotions.

Consolidation is simply moving the debt from one place to another, lenders will base your application on the new loan debt plus your existing credit card debt as they have no guarantee you will use the loan to pay off the credit cards.

lanbro · 13/07/2019 07:31

Sign up to Clear Score, it's a free credit check and will show you the likelihood of being accepted for certain loans and credit cards. The only debt I have is on a 30 month interest free credit card from sainsbury's, i have a standing order to have it all paid off before the interest free period ends

imsuchagrump · 13/07/2019 07:45

Your friend probably was telling you to get a loan to consolidate your debt as loan usually 7% apr and credit card a lot higher , if you have applied with the bank and turned down may be better just to pay off credit card .
Money supermarket is a soft search until you actually apply directly from the lender .

palahvah · 13/07/2019 08:16

Do you really need the thing that you are buying? It sounds as though you have a poor credit score and already have quite a bit of borrowing.
Suggest you 1) have a read of some of the forums on borrowing on money saving expert
2) talk to your bank - ring them up or go in - and ask about debt consolidation. They can look at that a bit differently and give you some options, but they won't search the whole market for you.
3) sign you for clearscore or similar to find out your credit score and how to improve it. Plenty of sites offer this for free - you don't need to pay to see your score.

SpideyMom · 13/07/2019 10:08

My bank put the money in my account within 60 seconds. Was only a slightly higher rate than the best rate I could find, so it made very little difference monthly but it was virtually instant.
I depends on your credit rating and also your loan amount. I think I got a slightly better rate as I took out over a £7500 loan (I had to consolidate debt run up by my ex and left me to pay)

LostInNorfolk · 13/07/2019 11:17

What rate are your credit cards on? 13.1% is probably hardly any cheaper than the cards?

Scarfaceclaw21 · 13/07/2019 15:59

In the kindest way possible, it doesn't sound like you are financially astute. Are you struggling with money? If you are being declined for loans there must be an issue of bad credit history, or that you simply can't afford it. My advice would be to do some reading, Martin lewis' website is great. Do a list of income and out goings and assess what you currently have before buying something else. Taking a loan to consolidate your credit cards just because one person advised you too could be a big mistake. I think you would really benefit from getting a handle on your finances.

BarbaraofSevillle · 14/07/2019 11:45

13.1% APR on £5000 is expensive. Have you worked out how much you will pay back?

You say you are comfortable, but if you are carrying balances on credit cards and don't have a couple of £k to buy 'something' then you aren't really.

Comfortable is paying for things out of savings and not using loans or credit cards unless they make you money - eg by earning cashback or borrowing at 0% to put it in an interest paying savings account.

Can you transfer the credit cards to interest free cards and then pay them off before the interest free payment ends?

Sounds like you need the moneysavingexpert money make over to cut your outgoings to free up money to pay off debt and save, and find which is the cheapest debt solution for you, which is rarely taking loans out to pay off credit cards.

In the days of direct debits and online banking having 2 payments, 1, or 76 is rarely here nor there, so unlikely to be a reason to take out a loan, which works for almost no-one as most people just run the credit cards up again, and end up with a loan and credit cards.

serenadoundy · 14/07/2019 11:47

Can you transfer the credit cards to interest free cards and then pay them off before the interest free payment ends?

OP won't get interest free. They were declined for at least 2 loans. Interest free cards will be offered to people who have a good rating. OP does not.

NoBaggyPants · 14/07/2019 12:06

The site is a credit broker. I just put in completely made up details but got several apparently guaranteed offers. Definitely one to avoid.

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