Best Way to "Borrow" £5000?

DaveR12

Hi, recently got a credit card from my bank (1st one I've had) have had it for a few months now and always purchase everything on it and by the end of the month I will pay it all off, basically trying to get some credit rating for myself.

Now I'm looking at buying a new car (privately) I have the money saved but spending the cash would leave me on my !!!! for a for weeks which I hate and don't want to do.

My idea now is to lend the £5000 I want (my limit on the credit card), once I sell my current car the money would go straight into paying half of the borrowed money and then I could easily pay the other half in 2 months or so.

Looked at getting a loan but they "fine" you for paying it off early, unless there's a company that doesn't fine you????

Since I have a credit card from my bank the apr isn't the best, tried for the Virgin 0% on transfer and purchases but the computer said no.

Any idea's or advice?

Thanks, Dave

HouseHuntr

Why is it some people get confused with two simple words such as lend and borrow ?

The_Unready

Sorry, but I don't understand.

If you want £5k, why would you lend that amount to somebody else?

Doesn't that mean that you'll then need £10k?

The Unready

lisyloo

Hi Dave,

Is there a reason you can't wait 2 months unil you have the money saved up?
Far better to save up for several reasons
1) You don't pay any one any interest or fees (fines).
2) If your circumstances change e.g. you lose your job, you aren't exposed to debt.

I would highly recommend saving up to purchase the item especially as it's not long to wait.

If there is a reason you can't wait then it would be a lot easier t buy a car from a dealer. That way you might be able to pay with your card as a purchase and you can trade in your old car too at the same time. Of course it may be a bit more expensive but it's also less risky as you have more rights.

Sorry, but nothing in life is free.
You could try a 0% card to do a balance transfer but that depends on your credit rating.

Gives you a couple of options to consider anyway.

DaveR12

The_Unready wrote: »

Sorry, but I don't understand.

If you want £5k, why would you lend that amount to somebody else?

Doesn't that mean that you'll then need £10k?

The Unready

I'm not lending it to someone else

DaveR12

lisyloo wrote: »

Hi Dave,

Is there a reason you can't wait 2 months unil you have the money saved up?
Far better to save up for several reasons
1) You don't pay any one any interest or fees (fines).
2) If your circumstances change e.g. you lose your job, you aren't exposed to debt.

I would highly recommend saving up to purchase the item especially as it's not long to wait.

If there is a reason you can't wait then it would be a lot easier t buy a car from a dealer. That way you might be able to pay with your card as a purchase and you can trade in your old car too at the same time. Of course it may be a bit more expensive but it's also less risky as you have more rights.

Sorry, but nothing in life is free.
You could try a 0% card to do a balance transfer but that depends on your credit rating.

Gives you a couple of options to consider anyway.

Basically getting the car I'm after now makes life easier for me as I need a car to tow and to put my dog in the boot lol.

I don't mind paying an extra £200 on top for borrowing the money now, have tired to get a 0% card but got declined... been trying to build my credit rating but isn't enough by the looks thought my annually salary would help but doesn't

Thanks for the advice, guess it will be a waiting game for now then

wontfallforit

DaveR12 wrote: »

I'm not lending it to someone else

Lender = person/organisation who gives out the money
Borrower = person/organisation who takes the money

lisyloo

Your title says "best way to lend £5000", so it's misleading to talk about lending when you want to borrow the money.
That's what has confused people.

Basically you can't get cash off a credit card cheaply (unless it's a super balance transfer card).
Usually it's at very high rates.
Your private seller won't take a credit card.

So your options are
1) get a loan (look for one with flexibility and no fees for early repayment).
2) wait a small amount of time and save up (my recommendation)
3) get a loan from a friend/family member but bear in mind if you lose your income then you risk stress in the relationship if you can't pay
4) Get a low rate card but you have already been turned down, which doesn't necessarily mean you won't get one, but it's not a promising indication.

DaveR12

lisyloo wrote: »

Your title says "best way to lend £5000", so it's misleading to talk about lending when you want to borrow the money.
That's what has confused people.

Basically you can't get cash off a credit card cheaply (unless it's a super balance transfer card).
Usually it's at very high rates.
Your private seller won't take a credit card.

So your options are
1) get a loan (look for one with flexibility and no fees for early repayment).
2) wait a small amount of time and save up (my recommendation)
3) get a loan from a friend/family member but bear in mind if you lose your income then you risk stress in the relationship if you can't pay
4) Get a low rate card but you have already been turned down, which doesn't necessarily mean you won't get one, but it's not a promising indication.

Changed the tittle to suit now

1) Know of any companies which do that?
2) Makes the most sense but I don't want to wait lol
3) 3 Memebers of my family already owe me money which I can't get back at the moment.
4) Done it and no lucky

lisyloo

Pay cash

He doesn't have the cash.

lisyloo

As regards loans, I would suggest reading this article here.

http://www.moneysavingexpert.com/loans/cheap-personal-loans#flexibility

But there will be a cost to borrowing money.
You cannot do what you want for free.
Sorry if that's stating the obvious but you have to expect to pay for the facility/risk.