BT vs Loan vs the world!!

Cuckoo999

Hi all,
This is my mind masher at the moment.
Getting a rewire done, it's going to be £4k all in, high but there is a lot of work, been haggling for 4 months with 5 different companies, started at £6.5k + VAT. Anyway......don't want to back out now, BUT, with having had central heating done this year - it's a new house - funds are tight, we have been saving as much as possible but I have about £1500 shortfall.

1 Will it be best to pay sparky on my AMEX ( It's the only C/C I have ever had ), get a new card then 0% BT the whole lot and pay monthly.
2 Pay sparky on AMEX, pay £2.5k, BT the rest.
3 Get a loan for £1500 - Should be able to get rid of it in less than 1 year
4 Pay sparky on AMEX, BT the lot, pay off £2.5k then monthly

If you can help me decide which way is going to be best to jump, I'll be hugely grateful.

roofusb

Have you checked that the electrician accepts Amex, and whether he charges an additional fee to cover the transaction charge that he will have to pay Amex (I suspect that he will)?

The best option may be to take out a Virgin card (0% for 16 months), BT to your current account and pay the sparky with that cash.

Might be worth paying a nominal amount on your Amex (but NOT on the Virgin card) in order to get Section 75 cover (not sure if it would apply in this case, as I assume you only pay after the work is done) - I'm sure someone else on this board can answer that one better.

leachyd

Id work out all the options, then cost them up based on interest rates, BT rates, etc. Which ever comesout cheapest, do! Suspect the best thing would be to spend on Amex (if you can) and bt to Virgin or similar (depending on how long you will need to pay it off, as some shorter deasl attract lower BT fees). If you are going to do this though, id suggest you get the BT card first, making sure the promotional period is long enough to make the BT. I say this because if you apply after, but are declined, then you have a big debt on AMEX, which would be more expensive to service than a one year loan (i presume), in which case a loan would be the most suitable option...

BigDave81

If you get the 0% credit card in hand before any payments need to be made just do a BT to your bank account and pay the sparky with your debit card, cash or cheque. I doubt a sparky would take AMEX to be honest unless it's a large company he works for.

izools

I personally would look at applying for an MBNA Platinum Plus, as they allow Balance Transfers at the 0% promotional rate straight into your bank account.

13 Months interest free.

Mother has been a long standing MBNA Platinum card holder (since 2000), and they often provide "offers", for example in 2007 she was offered 9 months interest free on any purchase(s) over £500.

This year she was offered 9 months interest free on any balance transfers.

If you can get approved, they can be a good card company

BigDave81

Virgin do the same and is also MBNA but it's 0% for 16 months and you can transfer into bank account straight away as well.

leachyd

I think the Virgin BT rate to a bank account is 4%?