New house - best way to buy furniture

Chopper5

I am looking for some advice on the best way to buy the white goods and furniture for my new house, I will be moving in next month.

I currently have:

• Halifax cc, zero balance, £6800 credit limit, int rate 17.9%
• Barclays cc, zero balance, £2500 credit limit, 19.9%

I am looking at a fridge freezer, TV and washer dryer from currys, a bed from Bensons and a sofa from Harveys. Total cost £2,000 - £2,500. All three stores offer interest free credit options but I am concerned whether I would get credit for all 3 as once I have applied for 1, my credit rating will go down. Especially as I have just got a mortgage for £100k on a £30k salary.

I am considering applying for the Tesco 0% on purchases for 15 months. I have read that the credit limit is dependant on my available credit, therefore I am thinking of cancelling my Barclays cc and reducing the balance on my Halifax to around £3000.

Does anyone know how long it will take for my credit rating to be updated if I ring Barclays and Halifax today?

Is there a better option I have not thought of?

Any advice would be greatly appreciated!!

MonkeyMad

You will get as many opinions as posters. How much can you afford to pay back per month might help some drive their answer. I for one would try to buy the essentials first ie bed possibly sofa, out of normal expenditure. Lack of TV, washing machine and fridge freezer can all be worked around for a short time (or even bought cheaply as interim).

Since you are interested in interest free credit you must have ~200 spare each month to avoid the interest. If you can't get a bed for £200 I would probably get the bed on interest free month 1. For the rest fridge month 2, cheap sofa month 3, borrow friends washing machine month 1-3, washing machine month 4, tv month 5 (i meantime tvs are so cheap they almost give them away in second hand shops). I'd be tempted to visit my local second-hand white goods shop to pick these up whilst I saved for better items (and in probability some of these older goods will go on for some time). New items are almost always over-rated

I almost never take credit if I can help it, it is pernicious and nasty.

Chopper5

My mortgage and council tax on the new house will be £300 less than I am paying now so I can afford at least that amount each month.

I had considered second hand and will take a look around, but I have been saving very hard for 6 years for my £20k deposit and thought I deserved to get something new for a change!

alexanderalexander

MonkeyMad wrote: »

You will get as many opinions as posters. How much can you afford to pay back per month might help some drive their answer. I for one would try to buy the essentials first ie bed possibly sofa, out of normal expenditure. Lack of TV, washing machine and fridge freezer can all be worked around for a short time (or even bought cheaply as interim).

Since you are interested in interest free credit you must have ~200 spare each month to avoid the interest. If you can't get a bed for £200 I would probably get the bed on interest free month 1. For the rest fridge month 2, cheap sofa month 3, borrow friends washing machine month 1-3, washing machine month 4, tv month 5 (i meantime tvs are so cheap they almost give them away in second hand shops). I'd be tempted to visit my local second-hand white goods shop to pick these up whilst I saved for better items (and in probability some of these older goods will go on for some time). New items are almost always over-rated

I almost never take credit if I can help it, it is pernicious and nasty.

I have to say I disagree with your post (aside from your suggestion to consider buying secondhand). While using credit for day-to-day living expenses is obviously very foolish, large one-off expenses such as white goods and furniture for a new house are exactly what credit is useful for. If you can get a 0% deal, and are confident that you can pay back the money before the 0% deal ends, then there is absolutely no reason not to buy on credit. In fact I would do so even if I had the cash available, due to the potential for engaging in a bit of stoozing. Going for months without a washing machine makes no sense at all!

My advice to the OP: close both of your current credit cards straight away as neither offers decent rates. When they show up as closed on your credit report (may take up to a month according to answers I had to a recent question, but it may be as little as two weeks) apply for the Tesco card - mine arrived pretty quickly after I applied.

msgnomey

so saving up would be out of the question then?

MonkeyMad

I did consider recommending it and I have been known to take advantage on occasion, but I tend to prefer to keep my credit lines open in case a real emergency happens and I need an essential big ticket item NOW (as in really now)! I just believe using credit is a bad habit to get into if you can but wait a few short months.

I am especially mis-trustful of 0% credit (not credit cards) as they seem to make it very easy to just miss the payment dates. I would regard my treat as not having the debt for something I can say I own, but that's just me.

Chopper5

Sorry I should have said, I do still have £7,800 in my savings account which I could buy the items from after I bought my house.

I just thought this forum encouraged people to be as MSE as possible i.e. The huge following of the stoozing thread.

I don't need credit to buy what I want, but what would make the best financial sense.

bouncydog1

I would look around for what you want in the stores, the check prices online from other suppliers. John Lewis for instance will match prices, but often give you a longer guarantee.

Look at lots of other suppliers - see if there are discount codes available.

Buy at the best price/value for money and use your cc. to get the advantage of section 75 under CCA. Then pay off from your savings when the bill arrives.

I have seen differences of well over £100 on a fridge between high street and online - much better in your pocket!

And before you close your cards, ring and ask what 0% on purchase deals are available or bt's with 0% fee - if none ask to close you will then be referred to another dept and may be able to negotiate a deal.

missile

I would use my capital 1 card which gives 1% back on all my purchases, then pay off balance in full using the £7,800 savings.

The risk with 0% cards and deals is will you have the cash to settle the balance when the deal ends?

globalds

I would get yourself hotukdeals bookmarked and buy the things you want when a Hot item appears ..
alternatively if you see an item you like and think it is good ,value stick it up on the site and see if it gets hot ..Most times the bargain you have found will be trumped by an exact item from elsewhere much cheaper ,or a bad reason why it is so cheap ..worth a look ..seriously.

Deru

I second missile's advice but maybe only spend half the savings on it. Then maybe 0% on the rest if you're confident of being able to clear the balance before the end.

Also, shop around. Go to Ikea and places with sales going on. There's furniture out there which are seriously overpriced. My mum bought a couch costing £2000 ...sure it's pretty white leather and soft but I'd be content with £200 one from a bargain furniture shop then shove some cushions on... the rest of the furniture was from Ikea and some of it's a real bargain if you're not too picky.