Crikey! Loving the Fabia vRS...
- Thread starter richieboy
- Start date
richieboy said:
Keep trying. I've got a spotless credit record and had no debt when buying the car. Tried a few people eg Direct Line and Marbles that I have other dealings with (and keep spamming me with special offer flyers in the post) and neither could get anywhere near their advertised rate. Direct Line "offered" 12.9% and wouldn't disclose why.
I'm using Northern Rock who came in at the advertised rate so perhaps give them a try. It's also worth trying to vary the amount you borrow. I ended up borrowing £1000 more than I needed because it got me a lower interest rate and made the total cost lower!
http://www.nationwide.co.uk/loans/default.htm
Nationwide should be the same rate for all, which is 6.4% over £7,500.
Nationwide should be the same rate for all, which is 6.4% over £7,500.
PMKeates said:
Any reason why their rates should be the same for all? Even borrowing 6k at 6.7% APR is fine by be...but im assuming they will be the same as everyone else whereby as soon as i phone them up after applying theyll tell me its double the dang APR!
Might just crack into the savings if i cant find anything, it would be a big old dent but at least there would be no outgoings...
Nationwide's policy. No idea whyrichieboy said:
Over £7,500 is 6.4% APR - http://www.nationwide.co.uk/loans/interest-rates.htm
richieboy said:
I don't understand this. If you have the money saved, why would you borrow money at a higher interest rate than you're getting on your savings?
Surely the most financially sensible thing to do would be to pay for it out of your savings, and pay the monthly commitment you would have undertaken by getting a loan into your savings?
clv101 said:
Its mostly as im young and want to build up a credit rating, at the moment the things i been looking at it would only cost me £190 to borrow £6000. After paying that off i would hope to have a decent credit rating and be able to get a mortgage etc later on in life?
Or should i still just use my savings?
richieboy said:
The credit rating issue is a valid consideration, but the desired effect can be achieved for free, without needing to pay through the nose for extra interest over your savings.
If I was in your situation, I'd use my savings to buy the car and get a credit card, (with a ~£200 credit limit if you can't trust yourself) and pay for shopping, fuel and anything else that you would usually pay for with your debit card with your credit card. If you go for a card with a low credit limit, every time you've bought something on your credit card, log on to internet banking as soon as you get home and pay the amount off your credit card. This way you are generating a tangible history of borrowing money and paying it back without any problems.
If you have will power and don't feel the need to buy a new PC or shoes or whatever just because someone will lend you the money to buy it, then log on to internet banking 4 working days before the credit card payment is due for the months expenses, and pay the balance in full. It will only be a nominal amount, but you are actually earning interest on the cash you have used to buy things.
Just to cover the inevitable concern that you'll forget to pay the balance each month, I know first hand that egg (and I'm sure others) allow you to pay the balance in full automatically each month.
The final option allows you to demonstrate good credit practice, with no extra hassle, with no associated cost, and also actually making a little extra cash.
Egg also pay something like 0.5% cash back on purchases.
I got myself in a bit of a pickle a while ago, but managed to not miss any payments, and using the model above I bought a £120k house with a borrowed (from a bank) deposit, and I'm 23 with no savings and ~£18k unsecured debt (managed).
/Thread resurrection