GE Money flexible loan

kazzer

Has anyone taken out one of these yet? Whats the good and the bad? Im looking for about 6k.

CCOVICH

I've not got one of these loans and never used GE Money, I would have thoughgt that they were one of the more expensive operators in the market, but looking at their site , they seem to be fairly competitive. €6,000 over 3 years seems to qualify for an APR of 7.9% (but this could be as much as 9.99% depending on your status).

To compare, www.tesco.ie would charge an interest rate of 8.9% APR on a loan for the same amount and term (extra €3 per month), but this is a fixed rate, so the repayments will stay the same no matter what the ECB does with the base rate, but you may be penalised for making an early repayments.

I'm not sure about the flexibility option. Assuming a payment break in month 7 and 8 each year for the duration of the loan, this adds €37 per month to your repayments, so the flexibility comes at quite a cost.

Also, as it's a variable rate loan, the rate can be increased at the discretion of GE throughout the life of the loan.

kazzer

So what about variable rate loans in general? Is it likely that the interest rate would go up? Thanks for your reply CCOVICH.

RainyDay

kazzer wrote:

So what about variable rate loans in general? Is it likely that the interest rate would go up? Thanks for your reply CCOVICH.

Yes - interest rates will probably go up, but it may take 2-3 years for the rise to happen. If you have a half-decent chance of being in a position to pay off the loan early, stick with variable rate so you don't get hit with extra fees.

branners69

kazzer wrote:

Has anyone taken out one of these yet? Whats the good and the bad? Im looking for about 6k.

I took one out with them in April 2005, I needed it for getting married in June!!

I got a loan of €8000 over 5 years ( even though I knew I would be repaying it all in a lump once a house sale was sorted)

My 1st payment to them was in the May for €245, this included a €72 admin charge. I was then charged €173 per month there after.

I paid them off in a lump in September, there was no admin charge for this.. I arranged a draft for the exact amount and that was it.. the customer service staff were very helpful..

A bit of advice is to check here:
http://www.askaboutmoney.com/clubman/BestBuys.htm

Have a look at the www.askaboutmoney.com site as you will get some helpful info there!!

Hope this helps!!

kazzer

Cheers man that helps. Thanks

branners69

kazzer wrote:

Cheers man that helps. Thanks

No bother, if you have any questions pm me!!

Best of luck, the hardest part is paying the b@stards back!!