Clear loan and apply for new one...or?

[Patch1875]

I have an existing personal loan that I got to purchase a car, I’m looking fo another car so looking to borrow again.

Wondering if there are any issues taking out another loan to top up the balance again or am I best clearing the existing one and taking out a new one?

Don’t now if having the existing loan will haave an impact on taking another one.

[interstellar]

I would work on what is the best rate and cheapest way to borrow and take that route.

[Patch1875]

Thanks

I’m thinking of taking out a another loan to run alongside the other one as it works out much better on the interest that’s being paid my monthly between the two will be higher which isn’t an issue but my worry is if there are any issues applying for another with the existing one.

[Captain Raymond Holt]

As said, go on rates. I think even if you asked your current lender they would probably just close down the existing and open a new, rather than increase the existing one.

[Patch1875]

Current loan is 3% just done a check with them and I take out another loan alongside the current one at 3.5%.

[Bluesgirl]

AFAIAA the loan will show on your credit file, which will indicate if there have been delayed or missed payments (which would count against you). Otherwise, if you've kept to the agreement and had the other loan for a while and the rest of your credit file is good, there's no reason why you couldn't take out an additional loan. www.MoneySavingExpert.com has a soft search facility which finds a loan you'd most likely (not guaranteed) be accepted for without the search showing on your credit file.

[Patch1875]

Bluesgirl said:

AFAIAA the loan will show on your credit file, which will indicate if there have been delayed or missed payments (which would count against you). Otherwise, if you've kept to the agreement and had the other loan for a while and the rest of your credit file is good, there's no reason why you couldn't take out an additional loan. www.MoneySavingExpert.com has a soft search facility which finds a loan you'd most likely (not guaranteed) be accepted for without the search showing on your credit file.

My credit is all good I think! I have the money saving expert account account with Experian and my score is 999 with both loan and card rating as good.

Never missed any payments my current lender is on there list and have accepted me for another loan, rate is slightly more 3.5 against 3 but thats just reflecting there current rate.

[bmwmike]

i just completed a 5yr loan with HSBC and for the past 36 months they had been offering to "top up" my existing loan and extend the term. I took that to mean there would be far more interest payable as the original loan remaining term would be stretched over the new term.