Getting a loan to pay off another loan is a step towards the path of madness.
Exactly!
Are you using these loans to buy jeans by the pallet load?
hahaha how can anyone forget that thread
Shep,
I really don't think this will help but here it goes.
There are many many factors when using a new loan to pay off another when considering to do so. Some things (from reading the thread) that I could suggest would be.
Take out a loan for the minimal amount you need whilst using savings to pay off existing loan.
Make sure new loan is equal or shorter than existing.
Make sure the rate is less than currently.
IF you take out a new loan and ZOMG only £20 more a month but 1 yr longer but ZOMG 1.5k in pocket you need to understand the basics on how loans work. You will be worse off!
Also, applying for multiple loans is doomed to destroy your rating. Each time you apply for credit, a credit agency (such as Experian) will record this. Having applied for 2 loans now shows 2 applications within the same time.. its bad. Applying for credit always dents your current rating.. think of it as a points based system. You use points when you apply for something.
You applied twice, you used more points. Now no one will want to touch you.. until you get more points by paying bills/direct debts/loan payments each month.
If you miss a payment/late fee. Again, you lose more "points".
.
