Loans?

[Netsky1991]

What is APR and are there any catches? I'm thinking of taking out a loan to pay for an insurance quote I found which is £1450 and I will have to pay £121a month which works out at total repaid of about £1500ish, I was thinking of doing this because my insurance atm is £211 a month so surely just paying the loan back would be easier and it's much cheaper? Sorry if that had confused any one lol!

[Luke]

Annual Percentage Rate.

Who is the loan with?

[_sexy_saxo_]

apr = annual payback rate......so basically wot u pay bk per year

my bad, lol means same thing though

[Netsky1991]

I just went on a comparison website Luke. So say the APR is 8.9% and I took out £1500. At the end of the year I would have to pay back 8.9% of £1500?

[Luke]

I just went on a comparison website Luke. So say the APR is 8.9% and I took out £1500. At the end of the year I would have to pay back 8.9% of £1500?

Have you been confirmed for the loan?

Getting a loan as opposed to the APR on the insurance is much better yeah, as insurance is like 24.9% APR roughly.

[Netsky1991]

No I was just looking to see roughly how much I would have to pay a month.

[Luke]

Who was the loan with though out of interest?

Also how old are you?
Have you got a credit rating?

[Netsky1991]

Errrrm I think it was Sainsbury's or Abbey.

Im 17 and don't know what a credit rating is lol:err:

[PSPDan]

I just went on a comparison website Luke. So say the APR is 8.9% and I took out £1500. At the end of the year I would have to pay back 8.9% of £1500?

Doesn't it mean you would have to pay back £1500 + 8.9% i.e. £1633.50

[lewza]

Errrrm I think it was Sainsbury's or Abbey.

Im 17 and don't know what a credit rating is lol:err:

I dont think you can take a loan out until you are 18?

[Luke]

Errrrm I think it was Sainsbury's or Abbey.

Im 17 and don't know what a credit rating is lol:err:

Doubt you'd get that to be honest mate.

It's hard to get credit until you are 18 and pretty sure as said, you need to be 18 to take out the loan. Have you tried other insurers?

Can someone take the loan in there name?

[Netsky1991]

I don't think you can but my parents could take it out.

[Danr]

interest free credit card?

[Netsky1991]

Cheers for all the help and advice anyway lads i'l just keep looking lol!

[Adamski]

One thing to remember to, your VERY unlikley to get that rate at such small loan amounts. The smaller the amount you borrow the bigger the percentage, id put that would probably be near to what the insurance percentage is, dont forget they want to make money out of you. The low percentage rates are normally for larger loans.

If you can get a 0% credit card it would be your better option, but at 17 its a problem.

[de4n0]

They will advertise the loands at a small apr like 5.4% but if you havnt got alot of credit rateing you are more of a risk so will bump it up to 15% and sky rocket the loan, so no matter how much they advertise the loan for, shop round first and dont just go with the bank your with now.

[Luke]

I managed to get a 7.9% loan at 18 but I did have a credit card with them so not sure if that helped or not.

[Adamski]

If you bank or already have dealings with them, it can go in your favour as they have history and records of you.

[gav_vtr52]

i got a 5k loan from lloyds think the APR is 9.2%
i pay back £5731 or sumthing around the 5700 mark

payin £160 back a month for 3 yrs

think halifax was the only one to beat that apr
but i fucking hate halifax tho :bored:

gav.