Applying for credit twice in a short space of time

Kestril · 4 January 2018 at 10:38PM

Hi MSE Forum,

Long time user of the site but wouldn't mind your opinion on an issue i'm facing.
I'm 27, never owned a credit card but pay off multiple direct debits a month without defaulting and have recently payed off a £4,000 car loan from my bank over 3 years without default.

So,

-I require a credit card by the latest mid april for a holiday which includes a car rental.

-I am also looking to purchase a new car in the region of £10,000 fairly soon on credit or a loan.

I feel the most logical solution would be to combine the two and get a 0% money transfer card and buy the car using this (paying the 3% transfer fee). The only problem is i don;t think I'll get the full £10,000 credit therefore will need another car loan to pay the remainder.

Another option is to just get the same car loan again from my bank for 10,000 this time and then just get a different credit card with better perks.

In both cases I will be applying for a credit card and a car loan in a short space of time.

My question is, will either application affect the other, and which order should I perform them?

Thanks in advance

Kestril

[Deleted User] · 4 January 2018 at 10:41PM

It's unlikely you'll get £10k on a first time card.

Get the car loan first if that's the priority.

Then look to apply for a card after to improve your credit worthiness

[Deleted User] · 4 January 2018 at 11:54PM

Do you really have to pay 10k for a car? Just asking

Kestril · 5 January 2018 at 12:28AM

'It's unlikely you'll get £10k on a first time card.

Get the car loan first if that's the priority.

Then look to apply for a card after to improve your credit worthiness'

Thanks - My only reservations regarding this is for the card application to be declined as I've recently taken a loan out. I wouldn't need a high credit limit on the card once I have the loan however so I guess that would work in my favour!

philip1427 · 5 January 2018 at 6:06PM

Just some input here....

I don't believe car dealers take credit cards? When I bought my card there was a surcharge of around 2% if you wanted to use this facility. Albeit surcharges are now becoming illegal now.

In regards to your holiday I would recommend getting a card with no foreign transaction fees. I use Nationwide Select CC as it is fee free to use and they use VISA's exchange rate which beats any FX rate on the high st.

ceredigion · 5 January 2018 at 6:15PM

philip1427 wrote: »

Just some input here....

I don't believe car dealers take credit cards? When I bought my card there was a surcharge of around 2% if you wanted to use this facility. Albeit surcharges are now becoming illegal now.

Which is why the OP was talking about a money transfer card.

ceredigion · 5 January 2018 at 6:19PM

venison wrote: »

Do you really have to pay 10k for a car? Just asking

The answer is probably no but there is nothing wrong with spending your money on the things you like

Sncjw · 5 January 2018 at 6:31PM

Do you really need a new car and at 10k as well given you have just paid off a 4K loan for the car you have. Do you really need to buy new car could you go for preowned.

Fingerbobs · 6 January 2018 at 10:38AM

ceredigion wrote: »

The answer is probably no but there is nothing wrong with spending your money on the things you like

The OP is proposing to borrow money and get into debt to fund an extravagance.
There are lots of thing I "want" but I don't buy them because I haven't got the money.

Applying for credit twice in a short space of time

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