Understanding deferred interest on a personal loan?
Discussion
Hi all, I'm looking at getting a loan in the next few days - approx £20-25k, for a car.
The only debt I have currently is my mortgage, so I don't exactly have much of an understanding of how it all works beyond the basics.
Using the comparison sites, the AA come up pretty consistently as the lender with the lowest APR (representative of course). One site mentions that this loan charges deferment interest - can someone explain this please in layman's terms?
After calling the AA customer service number, my understanding is that interest is charged at the representative rate for X amount of time, after which it can rise if the loan isn't settled by this date. The operator said that there is no way of knowing the deferment date, or the deferred interest rate, without applying. Obviously I don't want to apply "just to see" as it'll shag my excellent credit score.
Is it possible that the deferred rate will be very close to the quoted rate? I have an almost perfect credit score, mortgage etc.
If no payments are missed etc, is the total amount payable accurate or can this deferred interest malarkey increase the total amount from the quoted amount?
Cheers.
The only debt I have currently is my mortgage, so I don't exactly have much of an understanding of how it all works beyond the basics.
Using the comparison sites, the AA come up pretty consistently as the lender with the lowest APR (representative of course). One site mentions that this loan charges deferment interest - can someone explain this please in layman's terms?
After calling the AA customer service number, my understanding is that interest is charged at the representative rate for X amount of time, after which it can rise if the loan isn't settled by this date. The operator said that there is no way of knowing the deferment date, or the deferred interest rate, without applying. Obviously I don't want to apply "just to see" as it'll shag my excellent credit score.
Is it possible that the deferred rate will be very close to the quoted rate? I have an almost perfect credit score, mortgage etc.
If no payments are missed etc, is the total amount payable accurate or can this deferred interest malarkey increase the total amount from the quoted amount?
Cheers.
Gassing Station | Finance | Top of Page | What's New | My Stuff