What should I do? Need 2k..

jamlid

So I'm looking to buy a new car for around 3.5k.. I have 1500 already and need the other 2k.. I also have a 2k student overdraft to pay off.

I have just graduated and my halifax student overdraft stays interest free for a year from now, so the plan is to get that paid off before they start charging me!


Well one option I've looked at is Natwest's Graduate Loan. It would be charged at 12.1% APR..

Do I have any other (cheaper) options for gaining this 2k? Would a 12 months interest free credit card work? I'm unsure how credit cards work as I have never had one but could I take one of these out, withdraw 2k then pay it off before they start charging me interest?


Thanks!

Tixy

If you've never had a credit card before you might find it difficult to get a 0% promo card with a sufficent limit that will allow cash transfers at 0%.

As you need cash then it would have to be one of the few cards that allow you to do a super balance transfer (move money from the card to your current account). This would incur a one off fee (typically 3-4% of the balance you transfer). Such cards are listed here http://www.stoozing.com/sbt.php

If you could get such a card then you could just make minimum payments for the interest free period and providing it was paid off before the promo deal was finished could end up paying nothing in interest (though you will have paid the fee to start).

How much do you think you can afford to repay each month? If you pay the debt off in 12months could you not instead save up the cash first and then buy a new car in a few months or buy a cheaper car?

zppp

jamlid wrote: »

So I'm looking to buy a new car for around 3.5k.. I have 1500 already and need the other 2k.. I also have a 2k student overdraft to pay off.

I have just graduated and my halifax student overdraft stays interest free for a year from now, so the plan is to get that paid off before they start charging me!


Well one option I've looked at is Natwest's Graduate Loan. It would be charged at 12.1% APR..

Do I have any other (cheaper) options for gaining this 2k? Would a 12 months interest free credit card work? I'm unsure how credit cards work as I have never had one but could I take one of these out, withdraw 2k then pay it off before they start charging me interest?


Thanks!

When did you graduate, and are you currently in full time employment?

jamlid

Thanks for the info

I'll have a read of the stoozing. Would it be possible that I could use a normal credit card and buy it in a dealership?

Well i've worked it out as £333.33/month if I wanted to pay off all 4k in a year, which I can manage.. But couldn't manage any larger payments than that really!

Thing is, I need the car now so can't wait! And don't see the point in buying a cheaper car when I will only want to sell it and upgrade straight away

jamlid

zppp wrote: »

When did you graduate, and are you currently in full time employment?

I graduated last month and I'm in full time employment, yes.

I have had a mobile phone contract since 18 so figure this probably helps my credit rating?

Tixy

If you buy with a credit card in a dealership they usually want to charge you a fee for using the card (typically around 2.5%).
Plus if you are buying in a dealership you might get a better deal if you offer cash.

But I think you might still struggle to get a 0% card, even without it being an SBT one.

The phone contract might help a bit but is not really the same as having revolving credit on a credit card. Plus the fact that you have only had your job for a month will count against you - are you in a probationary period by the way?

jamlid

Ok thanks So if I can't get a 0% card, what are my options from there?

pjcox2005

My suggestion would be to think again, pop down to a car dealership and see what you can pick up different prices re new/second hand. I think you may change opinion and decide that actually an 'older run around' would work for you. May let you save to get a better car or actually you may want to spend money on other things in life.

If you are desperate then try 0% credit card, car finance from the dealer (although normally high APR), personal loan from bank or perhaps a loan from family (be careful lots of horror stories re lending/borrowing from family). When assessing rates, try and think how quickly you could clear the loan as that may change the term and cost.

One thing to do, make sure you calculate the total amount of interest to be paid so you know the true cost of the car and ensure you have spare money for the insurance/extras in running it.