Credit Card Loan??

drucesmith

I was looking to take out a loan to buy a new car as I have recently aquired a new job with an income sufficient to pay it off fairly quickly. (just over 1k a month after tax), Now I'm in a very fortunate position in that I live at home and my outgoings are limited to car expenses, food and miscellaneous expenses totalling £500-£600 a month. I have never owned a credit card and don't even have an overdraft on my current account, as i've always only ever spent what i've earnt. I got a few quotes for loans of 5k over 2 years and the cheapest apr was 24%!!
I found out about using a 0% interest balance transfer card to transfer the money into an egg money account, which would be perfect, other than the fact that I need a 5k credit limit to equal the loan.
Are there any cards which will give this sort of credit limit as standard or can several balance transfer cards be used to equal the 5k I need?
Any help would be greatly appreciated!

CLAPTON

If you have never had a credit card before, I'm afraid your credit rating will be low as there will be no history of proper CC repayment
So its unlikely you will get a 'good' CC with 0% BT facility or an eggmoney card or a 5k credit limit.

why not continue your current excellent current policy of only spending what you have... so save up until you have enough... why waste your money paying interest to banks.

to build up a good credit rating (it has it uses although there is no need to actually use credit ) apply for a 'beginners' CC like barclays initial, vanquish, cap 1.. all charge shocking rates of interest but if you pay in full each month you don't pay any.... just use the card each month for things you buy anyway (say petrol) and pay in full when the bill arrives or even better set up a direct debit for the full amount so you don't forget.

YorkshireBoy

drucesmith wrote: »

I got a few quotes for loans...

If these involved credit searches (as opposed to quotation searches), they will have damaged your credit file...at least in the short term.

of 5k over 2 years and the cheapest apr was 24%!!

This indicates your credit rating is currently lower than a snake's ********.

As CLAPTON says, you can improve it with a credit-builder card or maybe a credit card from your current account provider who, after all, knows more about you financially than anyone.

Just a thought...are you on the Electoral Roll?

drucesmith

Thank you for your advice guys!

Luckily I only carried out quotation searches and checked my credit report (Experian) and no credit checks were made so no damage has been done to my credit score.

I read the tarting article and applied for an agg money card, which was successful but like you said, I was only offered a low £500 credit limit. One question I have though, is if I use my card for purchases and use my credit, is there a set date at which I have to pay off my balance each month? Does the interest rate not apply if you pay it off in full then?

And yes, I am on the electoral role.

Thanks again.

CLAPTON

You did well to get an eggmoney card even with a low credit limit.

the eggmoney card requires you to set up a direct debit.
the online statement will show when the money is due (you will receive an email telling you the statement is ready)
if you pay in full by the 'payby date' there is no interest otherwise there is.

log into your account and check that the DD is set for full payment (it can be changed on line).