Credit card for expensive one-off purchase

throwaway101

Hi all,

I'm new to credit cards - I've never found a need for them (I typically use cash and occasionally debit cards; Paypal where possible for online payments but mostly debit cards).

I'd like to make a one-off purchase for a new computer that is expected to last me for a very long time (more than 6 years if possible). I would have no problems paying this in cash right now, but I would like the protection afforded by a credit card as it will be quite a large amount (close to £1,500). However, I would imagine I have little-to-no credit rating (never been in debt and never had a credit card).

If this helps (I'm not sure if this contributes to a credit rating?): I am a recent graduate who is thankfully lucky enough to have a fairly comfortable salary. I am pretty spendthrift, saving over 60% of my salary after tax, but have no savings plan at the moment (aside from building up a savings buffer) - this will show up on my bank's record quite easily. I am quite debt-averse.

My questions are:

- What options would be possible (it looks like a 0% card is in order - can this be confirmed?)?
- What options would be recommended?
- Would such a high credit limit be possible? Or would I have to go through financing on this computer?

Thanks in advance.

Just a throwaway account

bengalknights

You might find that the only credit cards your open to are sub prime with max £500 limits.

Are you registered on the electoral role and have credit facilitys such as overdraft contact mobile etc already which might help.

jonesMUFCforever

What protection do think you will get using a credit card?

Curr946

Section 75....

throwaway101

bengalknights wrote: »

You might find that the only credit cards your open to are sub prime with max £500 limits.

Are you registered on the electoral role and have credit facilitys such as overdraft contact mobile etc already which might help.

Yes, I'm on the electoral role; no, I have no other sources of credit. Cash is king to me...

I suppose I might have to consider buying separate parts and building my PC instead... Could be a decent exercise, I suppose!

jonesMUFCforever wrote: »

What protection do think you will get using a credit card?

Curr946 wrote: »

Section 75....

Pretty much.

I do have Visa Debit, but legally binding is always better.

cos_2

Isn't Section 75 more about protecting you if the supplier goes kaput, or delivers something that isn't what you asked for then you have difficulty getting it fixed?

If you're buying this from PC World or something similar then just use your cash. But, if it's from an internet source you're not entirely sure about (and there are many), different matter, and you'd be right to think Section 75.

As for a card, I think you might struggle with such a limited credit history - being 'debt-averse' might make companies 'lender-averse' It wouldn't matter about the %age rate as you would pay it off immediately and attract no interest.

Sorry I can't focus more on your exact questions. Good luck.

katejo

A credit card would be a very good way to pay for your computer because of the consumer credit protection and because it will also improve your credit rating. You have 2 options

1. Try for a 0% one and then pay it off over a period and before the 0% expires.

2. Don't bother with 0% but just take money from your savings and pay off the whole balance at the end of the first month.

You can then keep the card for any future large purchases or emergencies.

throwaway101

cos wrote: »

Isn't Section 75 more about protecting you if the supplier goes kaput, or delivers something that isn't what you asked for then you have difficulty getting it fixed?

If you're buying this from PC World or something similar then just use your cash. But, if it's from an internet source you're not entirely sure about (and there are many), different matter, and you'd be right to think Section 75.

Yes - it's an Internet dealer and they do have a decent history, but better to be safe than sorry...

Out of curiosity - how long would it (very roughly) take to build up a credit rating "worthy" of such a credit limit?

bengalknights

throwaway101 wrote: »

Yes - it's an Internet dealer and they do have a decent history, but better to be safe than sorry...

Out of curiosity - how long would it (very roughly) take to build up a credit rating "worthy" of such a credit limit?

Upto a year depending on how you start, if say you already have a bank account that would be the start then a mobile contract or sub prime card would build it up and give you good history and show responsbile borrowing which potentially opens up the opportunity to the better cards.

throwaway101

I see - thanks! Time to put the thinking cap on, or treat my current desktop nicer for the next year or so.

cos_2

Or build your own as you said earlier. There are far more reliable websites with spot-on advice to help you with that than there are financial websites to help with finance ...

Oops - should I have said that here?