A Strategy To Get The Cheapest Apr On A £1,000 Loan

[maneesh]

i met someone who works for lloyds tsb loans dept. she told how some customers get a very low APR on a very small loan, which is not usually the case, as the largest loans over longest periods have the best APRs.

1. customer gets 5 or 10 year loan for £30,000

2. one month later, customer repays £29,000

3. no early repayment charges, since £1,000 still outstanding

interesting way of doing things

[Russdx]

only problem is is i saw 30k in my acc id see 0k next say and a brand new 5series beamer the next day in my drive LOL

[Bazza]

incorrect :o

the initial loan would be say £30000 over ten years @ xx% apr

the initial loan cost would be calculated at xx% over 10 years

which roughly could be between £2000 and £3000

so your loan of £30000 is then £33000 split over ten years

pay off £29000 within the month and you will still owe £4000 !!!!

this is without any seperate charges that Lloyds would charge immediatly

[ColinBarber]

incorrect :o

the initial loan would be say £30000 over ten years @ xx% apr

the initial loan cost would be calculated at xx% over 10 years

which roughly could be between £2000 and £3000

so your loan of £30000 is then £33000 split over ten years

pay off £29000 within the month and you will still owe £4000 !!!!

this is without any seperate charges that Lloyds would charge immediatly

you will need to check the T&Cs. Some (most) loans work this way other will calculate interest daily/monthly/yearly etc. however they normally have a higher rate.

[P4UL T]

The loans that we do at Barclays earn intrest at a daily rate on the outstanding balance. (ie the fixed apr)

So your theory would work,

However, you cant pay back part of the loan when ever you feel like it, you have to stick to the monthly payment for the term of the loan. If you want to payback the loan early you can, but it has to be the full outstanding balance.

So it wouldnt work, dunno how other banks work tho.

edit... I just remembered that Egg let you pay money off your loan when you feel like it, so maybe it will work. As Colin said, im sure there would be some sort of clause tho

[Steve ( West Mids )]

Even on daily interest and being able to pay back early you ar paying interest on £30,000 for a month as opposed to £1000 that you actually want. I make that 30 times the lower interest rate. No brainer.

[Ellz]

I saw that a bank are doing 12% interest on customers account when taking out one of there deals.

I had a loan about a year ago i paid less interest than this about 5-6% so in theory if i took out a loan for 10 grand at a rate of 5-6% and put it in the 12% for a year i would make 6-7% of 10 grand. I think

do you think this could work ?????????