u/proxy_life

Hi all, I am a bit confused and would appreciate some perspective.

Looking at buying a car and was considering using a personal loan for it. The personal loan interest rate is turning out to be around 8.7%, or something similar. The loan amount would be around 10k

The part I’m unsure about is this: I currently have ~60k in savings. My initial thought was to take the personal loan, keep most of my savings intact, and then pay off the loan aggressively within 6–9 months. The idea was that this would let me keep liquidity in the short term while still allowing me to clear the debt.

But, now I am wondering whether this actually makes any financial sense. If the loan is around 8.7% and my savings are earning much less than that, am I just paying unnecessary interest for no real benefit?

Would love some feedback on what you would do in my situation. I’d also appreciate any advice on shopping around / suggestions for personal loans, as the quoted rate seems a bit high.

EDIT:
- I am renting right now

- And, plan on spending about 15k on the car

TIA!

Hello,
I recently applied for a Revolut personal loan with a 6.5% interest*. I'm going to use it for financing a car.

However, after the application; I received a conditional accept from them where they bumped up the interest to 7.7% that I ended up cancelling.

I don't recall correctly, but there's a loan purpose option where I might have selected "Car" as the option. I suspect that might have caused the bump in interest rate. I've heard that a lot of people when they reapplied received their approval at 6.5%.

Should I be explicit in letting Revolut know my purpose of loan? Or is it okay to just use purpose as "personal" or equivalent which might play out nicely in terms of lowering the interest?

Also, another silly question: I applied pretty late at night last time around 12:30 and it went through CCR checks which took them more than 3 business days. Is it advisable to apply during business hours where it might just get auto-approved sooner than the manual checks?

Any advice or suggestion might be helpful here. Thank you!