Need 2k for second hand car purchase

john59_2

Which way should i go to get 2k to buy the car. Total newbie to this so please excuse my ignorance.
Regards.
John

Rafter

Cheapest way will be by a zero % credit card.

Suggest an Egg Card.

Once you get it, do a balance transfer online to your current account and pay for the car using that.

You won't pay interest on the egg card for about 8 months, but make sure you start saving up to pay it off and that you pay the minimum balance to keep your credit history good. Once the interest free period is up, apply for another card, also with a zero % promotional offer and just transfer the balance to pay off your egg card, to avoid paying any interest.

john59_2

Thanks for the reply Rafter.
I aim to go to my bank on Friday (TSB) with my current credit card and draw the 2K to purchase the car and then as per your advice apply for the EGG card at 0% to pay off the TSB card ASAP.
Am I correct in following this procedure?
Best regards.
John

payneardo

be careful as you may get charged a cash advance fee if taking out of your current credit card. & check how long you need to pay the balance of your current credit card just in case thers a delay in your egg card application

Skint_Catt

I suggest you put the application into Egg (or Virgin which I have just done an identical thing with) before you withdraw the money on TSB - sometimes it takes a while for the application to get processed then the transfer takes a few more working days and before you know it you will be getting charged interest by TSB for a cash withdrawal.

john59_2

Thanks for the help peeps:) I will take your advice.
Best regards.
John

paint

I also think it depends on factors such as:-

- how disciplined are you when it comes to your financial affairs? When it comes to the time when any 0% deal is up, will you be sufficiently disciplined to do the research into the best deal at the time and switch cards? If you are a couple of months late in switching it will cost you! (e.g. if a 0% deal reverts to, say 18% after the 0% period, it would end up costing you about £20 per month in interest (based on a remaining balance of £1500 for each month you remained on the higher rate)

- how credit worthy are you? Will you find it easy to be accepted for credit cards offering 0% deals?

An alternative could be to go for a life of balance credit card deal (if you are not so disciplined - like me!). For example, if you got a 3.9% life of balance card and paid just over £100 or so per month, you'd have the debt repaid in approximately 20 months, costing about £65 interest on top of the £2000 (I think!). The trick though is to pay a fixed amount off each month (like a loan) - you can set up a standing order for this. If you just pay the minimum balance it can take years to clear your card (and therefore up your overall interest payments). I understand that texaco have had a good 3.9 life of balance deal (as have mint) so it could be worth checking these out.

If you are organised financially, then of course 0% is much better than 3.9!

Good luck!

jazzys

I have just borrowed £1300 off my parents to put towards a car.
I was hoping that my barclaycard would pay for it but as it was from an auction they didn't accept them.
Whats the best way to pay my parents back soon.
I saw the bit about apply for an egg card and do a balance transfer into a current account but would that be possible in my case?

Debt_Free_Chick

jazzys wrote:

I have just borrowed £1300 off my parents to put towards a car.
I was hoping that my barclaycard would pay for it but as it was from an auction they didn't accept them.
Whats the best way to pay my parents back soon.
I saw the bit about apply for an egg card and do a balance transfer into a current account but would that be possible in my case?

It's worth applying if you have a good credit record.

jazzys

I don't understand how you do the balance transfer bit.
I need to pay my dad £1300 how do I do it by taking the egg card?

Sory for my ignorance but its just not clear to me how this would work.

Cheers