Is this a good idea

Michco1982

Hi all, avid fan but first post.just hoping for some advice really. Let me begin. My OH and I are looking to redo our kitchen asap.we were looking at personal loans but after reading some info here we decided that using the credit card I have would be a better idea. we are planning to use less than £3000.I have 2 credit cards, barclaycard,just cleared,and an unused nationwide. I was thinking that if I make my purchases on the nationwide card then transfer the balance to my barclaycard at their current existing customer rate that would be clever of me.
I don't know as I have not done this kind of thing before and am worried I may be missing something. I have no outstanding debt at present and am very good at making sure this stays the case. But I feel this really is worth it for my dream kitchen. Any advice greatly appreciated.

Tixy

Hi and welcome

On your cleared barclaycard have they offered you a 0% balance transfer deal? but not a 0% purchase deal?

You might want to start by seeing if they will give you a 0% purchase deal (if not one online then phone up and ask)- that would save you the balance transfer fees which might be around £100 or so.

If they won't then you might want to consider applying for another new credit card that does offer 0% purchases. If however you cannot do either of these options but can do a 0% BT to your barclaycard then your plan is still okay.

Will you be able to afford to pay off the full amount in the 0% offer period?

redpete

Depends on:
- the rate you get from Barclaycard for balance transfers plus the BT fee
- the period for which this rate applies
- if you can pay it off before the end of any BT offer
- what you can do if you can't pay it off by then
- what rate you could get on a loan and for what period
- how much you can afford monthly to pay either off.

kataklysm

As per below, check whether your 0% promotional offer still applies on the Barclaycard first. And also... without wanting to lecture I would add... my first innocent credit card purchase was a kitchen and bathroom suite, just £2.5k. And it spiralled out of control at a terrifying rate when my partner lost his job, and I then lost mine.

To pay back 3k in 12 months, you need to find an extra £250 a month. Alternatively, in that time you could save up that amount, and if something happened to your finances (which in my experience is likely because life is like that..), you'd have a buffer instead of a debt burden.

Sorry to be so down on credit cards and your new kitchen... but if you're after the clever decision, well, with my wise hat on and the benefit of hindsight, I would say wait it out. Unless of course your kitchen is literally a hole in the floor and some wires sticking out ... in which case, good luck with that

Joe_Bloggs

I am with Kataklysm on the strategy.

Prove that you can repeatedly save in excess of £250 per month before splurging £3000. Build up a cushion of savings so that you can afford temporary blips in income or expenditure.
J_B.

chattychappy

If the purchase involves a deposit and later payment of the balance, check you can pay the balance by CC without surcharge. Ideally check you have it in writing somewhere.

A few credit cards do allow you to transfer funds to your current account (eg MBNA and historically Barclaycard ) but there is a fee for this so you have to "do the maths".