New to credit cards... Questions Questions!!

TheEffect

Can I ask why you didn't just apply for a £500 overdraft? If you got accepted for a credit card, you'll get accepted for a £500 overdraft easily. It's much less hassle and you can withdraw cash/pay with debit card without problem.

YorkshireBoy

Overdrafts can be expensive though, at around 20% EAR.

However, the Halifax One card could be used for all normal shopping (including that of close relatives who normally pay cash) so could minimise the amount of debit interest charged each month.

Would require discipline, organisation, a budget, and a 10-month plan though.

MissWorzel

I have an overdraft already, but don't fancy the thought of going into it and gaining interest/charges.

a 0% CC seemed like the best option, as a loan is a massive no no!

paying £500 can be done in a matter of a few months, and at 0% for up to 10 months, that sounded excellent, and would be if the man accepted cards

Ill try on the ebay board though, thanks Yorkshire

TheEffect

YorkshireBoy wrote: »

Overdrafts can be expensive though, at around 20% EAR.

However, the Halifax One card could be used for all normal shopping (including that of close relatives who normally pay cash) so could minimise the amount of debit interest charged each month.

Would require discipline, organisation, a budget, and a 10-month plan though.

If the OP could get a £500 overdraft at 18% and will pay off the £500 within 3 months, wouldn't it be better off just doing that then applying for a credit card and going through the hassle of trying to work out how to pay for the bike.

18% of £500 over 3 months = £22.50

£22 for not having the hassle of using a Credit Card?

I maybe totally wrong, as I'm 18 and have just started looking into credit cards/overdrafts myself.

EDIT - Just read your post above - That's fair enough.

TFD_2

I think for a lot of people it's psychological - the credit card has a balance, rather than an overdraft having a negative balance... also you have to take the overdraft balance then into account to work out how much cash you have! It depends on how your brain is wired I think!

If you have a sufficient overdraft in place, and plan to pay for the scooter over 3 months, then it would be far easier to just take the cash out of your bank account.

Your PayPal idea will work if you have 2 accounts - one against your card and one against your bank account - this is how mine are set up, although for different reasons. Bear in mind PayPal will take approx 4% of the cash, so you'd have to send just over £520 over to take £500 out.

rdty21

I dont know anything about paypal but if what TFD said above is correct, you might aswell use an overdraft. Seems like the easiest option to me.

MissWorzel

Thanks guys for your help... I've sorted something out anyway, but its good to know what my options are/other peoples opinions are!