Best/cheapest way to loan 7k?
Discussion
I'd quite like to borrow about 7k to top up what I already have saved in order to purchase a newer car.
What's the best way to go about this?
I don't have a credit card, and never really have, but looking at some of the deals available, wouldn't it be cheapest to use a credit card on 0% interest for 20 months (or whatever length the term might be), then either move the remaining debt to another card, or get a 'normal' loan to cover the outstanding amount.
Also with the above, if it was a private sale / purchase, how would I pay the seller via the credit card?
Or is the above a really daft idea and should I just pop to the local high street bank and get a standard loan.
Apologies if this is a daft question, I've not needed/wanted to borrow money for 10 years or so.
What's the best way to go about this?
I don't have a credit card, and never really have, but looking at some of the deals available, wouldn't it be cheapest to use a credit card on 0% interest for 20 months (or whatever length the term might be), then either move the remaining debt to another card, or get a 'normal' loan to cover the outstanding amount.
Also with the above, if it was a private sale / purchase, how would I pay the seller via the credit card?
Or is the above a really daft idea and should I just pop to the local high street bank and get a standard loan.
Apologies if this is a daft question, I've not needed/wanted to borrow money for 10 years or so.
Simpo Two said:
Would you get a £7K credit limit on a first CC?
A private seller won't be able to take CC payments. Unless there is some cunning online thng I don't know about.
After filling in an online form I'm eligible for many cards, most of them with no credit limit - I found that a bit frightening to be honestA private seller won't be able to take CC payments. Unless there is some cunning online thng I don't know about.
It may be worth actually borrowing slightly more.
If you borrow £7,500 then you could get 3.3% with M&S or HSBC that someone previously linked to.
The lowest interest rate on £7,000 is higher at 4.2%
The difference means that over 36 months, it's actually £72 cheaper to borrow the higher amount. (£381 in interest vs £453).
See here: http://www.moneysavingexpert.com/loans/cheap-perso...
You've never had a credit card before, have you got an existing mortgage, or loan etc? If you've not got any of these, your credit rating might not be too great due to lack of information, and you might not get the amount of interest rate you'd like
Try https://www.clearscore.com/ to see what your credit file looks like. Anythign above 400 should be an indication that you'll be alright.
If you borrow £7,500 then you could get 3.3% with M&S or HSBC that someone previously linked to.
The lowest interest rate on £7,000 is higher at 4.2%
The difference means that over 36 months, it's actually £72 cheaper to borrow the higher amount. (£381 in interest vs £453).
See here: http://www.moneysavingexpert.com/loans/cheap-perso...
You've never had a credit card before, have you got an existing mortgage, or loan etc? If you've not got any of these, your credit rating might not be too great due to lack of information, and you might not get the amount of interest rate you'd like
Try https://www.clearscore.com/ to see what your credit file looks like. Anythign above 400 should be an indication that you'll be alright.
Greshamst said:
You've never had a credit card before, have you got an existing mortgage, or loan etc? If you've not got any of these, your credit rating might not be too great due to lack of information, and you might not get the amount of interest rate you'd like
Try https://www.clearscore.com/ to see what your credit file looks like. Anythign above 400 should be an indication that you'll be alright.
I've had loans / finance deals before (PC's, Car insurance etc) the last cretid card I had was at least 10 years ago.Try https://www.clearscore.com/ to see what your credit file looks like. Anythign above 400 should be an indication that you'll be alright.
I'll give that site a go, cheers!
Gassing Station | Finance | Top of Page | What's New | My Stuff