Q&A

Loans vs New Credit Card. What should I do?

I have a fair credit history. I am in full-time employment; I earn 37k a year. I am single. I have no dependents. I have one credit card 2700 pounds in debt and a 2500 overdraft facility from my bank. I have been managing my account fairly well over the years. I have been overdrawn for the last year or so, but never went over 1100 limit and now I have almost repaid my overdraft, I am trying to get a loan, 10000, but I have been finding it very hard. My bank, after 14 years with them, offered me a loan at an unbelievable 26.9% Apr. That means that after 6 years I would have had to repay 17000 pounds. 7000 pounds interest!!! Scandalous. They said that has to do with the fact that I lived at the current address for less than three months, but clearly I find this to be a poor excuse. I don't know what to do now. There are many banks offering better loans, but I am concerned as I do not want to approach too many loan companies and build in the process a negative credit score. I have been thinking that perhaps I should apply for a credit card, transfer my balance, and keep my original card to make purchases. I am stuck. Should I get another credit card and then apply for a loan? or perhaps should I start shopping around for a loan? And do you know which loan I should go for? Any advice would be very much appreciated. Thank you