£300 - Use my Egg Credit Card or get a small loan?

jp1181

Hi,
- I have very recently started with an Egg credit card onto which I have transferred a balance from an older card (approx £1200).
- It is interest free 12months(ish).
- Currently I'm paying this off at about £60 per month (roughly double the minimum payments needed).

- I need to find about £300 for a vital purchase and am not sure if putting this on top of my credit card will affect my repayments (I really want to clear this transferred balance).

- Will my repayments clear the £300 first before the rest of my balance?
- When it comes to the end of interest free period, will I be charged different levels of interest for the £300 purchase and the £1200 balance transfer?

Would it be easier to just get small £300 loan?

Thanks

foogirl1983

NEVER EVER EVER SPEND ON A BALANCE TRANSFER CARD!!!!

Seriously, you'd be better trying to get another card to borrow the £300 on, as any payments you make will go on the cheaper debt first.

Shelldean

I thought any money paid would go towards the interest free balance first, leaving the £300 gathering interest the whole time.

BUT I'm not totally sure on this I know this is how it works on my card, but it's not an egg card

am sure someone with more knowledge will be along soon

jp1181

Okay....just double- checked what my egg card gives:

Balance transfer - Interest free until 1st Dec 2010
New purchases - Interest free until 1st Feb 2010

I'm guessing putting the £300 on this card will a bit of a no-no.

So...Is a second card a better option (one with 0% on new purchases) or a small loan?

Shelldean

uummm I don't want you to think I;, ignoring you but I'm not really sure so would rather off no advice than offer duff advice.

NickX

jimmiepreston wrote: »

Is a second card a better option (one with 0% on new purchases)

That would be preferred option.

Golden Rule : Never spend on a Balance Transfer card unless there are Purchases and Balance Transfers promotions of equal length (yours are NOT).

Tesco currently offer a nice 12 month 0% purchases card.

jp1181

I don't think you're ignoring me! Thanks for your help, I think I'm going to take out another card a 0% new purchases card that's for 9months+ (Tesco or Halifax maybe), put the £300 on that and pay it off before the deal runs out, then cancel the card.

I don't know how having two new credit cards in two months will affect my credit rating but as long as I make the payments I should be ok, shouldn't I?

Unless anyone has a better idea for me?

Thanks

NickX

jimmiepreston wrote: »

I think I'm going to take out another card a 0% new purchases card that's for 9months+ (Tesco or Halifax maybe), put the £300 on that and pay it off before the deal runs out, then cancel the card.

Good Plan IMO

jimmiepreston wrote: »

I don't know how having two new credit cards in two months will affect my credit rating but as long as I make the payments I should be ok, shouldn't I?

I wouldn't worry about this, I applied for 3 cards last month.

Agree as long as you make the payments then your sorted :beer:

jp1181

Great, thank you, I feel much better about all this now!