Home > FAQs > Getting a Good Deal on Credit and Loans: FAQ

Getting a Good Deal on Credit and Loans: FAQ

By: Sarah Clark (ILEX) - Updated: 17 Sep 2012 | comments*Discuss
 
Credit Credit Card Loan Finance Apr Rate

There may seem to be less good deals around on credit, but if you shop around you can still find some really good deals if you know where to look.

Can My Credit Rating Make a Difference?

The short answer is yes. The first barrier you’re likely to come across when you’re bargaining for a decent credit deal is that you don’t have a good rating. Contrary to what you might think, not having any credit to your name won’t actually serve you well when you apply for a loan or credit card, because one of the factors that credit reference agencies use to assess you is how you’ve handled credit in the past. If they have no record of your ability to handle credit and make regular payments, you will find it harder to get credit in the future.

So, having a few credit cards, or a loan won’t go against you, as a rule, as long as you’ve kept up payments and there are no obvious problems. It can be worth contacting one of the credit reference agencies or going online to do a check of your records before you apply for anything. This way you will be able to find out whether you have anything on your records that needs to be queried or amended.

What’s the Deal with APRs?

The APR or (Annual Percentage Rate) is the ‘annual percentage rate of charge’ and this covers the interest rate, any fees or loan payment protection charges. The lower the APR, the better and it’s the best way to compare the price of a loan, overdraft or card. You need to be aware that even if the APR is low, the length of the loan may also mean that you pay back more than you would on a loan of a lower APR – so check the figures when you get a quote for any loan or finance agreement to see what the ‘total amount to be repaid’ is. It can be quite sobering and an incentive to pay a higher payment for a shorter period of time.

How Can I Reduce Payments on My Credit Cards?

Many credit card companies have caught on to the trend of ‘Credit card tarting’ – where you switch your balance from one low or zero rate deal to another as soon as the promotional period ends. Although in harder times the finance companies are inclined to be less generous with their promotional rates, you can still find good deals if you check the price comparison websites like breatthatquote and moneysupermarket.

The finance companies are being more careful these days so you might find that you have your application refused if you have a less than exemplary credit rating. But if you already have a credit card or two, they seem to go through phases of falling over themselves to get you to transfer balances onto them at very good interest rates, so hold on until you get that letter with the credit card cheques in it, and make your move when they get desperate enough to offer you 0%.

If you do move balances around, be aware that you will be charged for this – usually in the region of 3% of the balance you’re moving.

You might also like...
Share Your Story, Join the Discussion or Seek Advice..
Why not be the first to leave a comment for discussion, ask for advice or share your story...

If you'd like to ask a question one of our experts (workload permitting) or a helpful reader hopefully can help you... We also love comments and interesting stories

Title:
(never shown)
Firstname:
(never shown)
Surname:
(never shown)
Email:
(never shown)
Nickname:
(shown)
Comment:
Validate:
Enter word:
Latest Comments
  • Norman kaid
    Re: Dealing With Cowboy Builders
    Please please avoid andrew oates liverpool of landscape industries he took £3000 from us left our garden a right mess and fled…
    25 October 2020
  • RealInvestor
    Re: Dealing With Cowboy Builders
    Cris Webber, from Aberdare/Mountain Ash, trades as 'CSW Construction' is a liar, thief and fakes certificates and work done. He is…
    19 October 2020
  • Manda
    Re: Faulty Goods
    I purchased 2 leather sofas in October 2019 to find 6mnths down the line it was peeling and the arms wer cracking they came out to view it they new…
    16 October 2020
  • Paul b
    Re: Dealing With Cowboy Builders
    The unfortunate victims of James mcginity please take him to court he’s done this over and over again I worked for him and his…
    13 October 2020
  • Helen
    Re: What If Your Plumber Makes Mistakes?
    My plumber replaced shower outlet with a design which quickly blocks and is difficult to clean. Should he return to…
    12 October 2020
  • chi
    Re: Dealing With Cowboy Builders
    Avoid Ademola Atobaru from J.Mays Construction Ltd. He did not treat walls before painting, the paint started to peel of…
    12 October 2020
  • Shah
    Re: Dealing With Cowboy Builders
    AVOID AVOID AVOID Mr KAMAL AL WADI WHO CALLS HIS COMPANY S&A Renovation his contact is Mr Mohamed Kamal Alwadi 180 Grove Road…
    11 October 2020
  • moments
    Re: Council Houses - Your Right to Buy
    hi my mum is 80 in a 3 bed council house, my son who is 40 has lived with her for 20 years , can he buy the property , he…
    10 October 2020
  • moments
    Re: Council Houses - Your Right to Buy
    hi my mum is 80, and my son who is 40 has lived with her all his life, can my son buy the house its council, he isnt on…
    10 October 2020
  • EBM
    Re: Dealing With Cowboy Builders
    Avoid JAMES PAUL McGinnity at all costs! He is trading under the name of JPM Construction as a sole trader. He has conned us of a…
    9 October 2020