New to credit cards - need some expert help please.

Gilb501_2

Hi everyone,

I would be extremely grateful if anyone could give me some advice.

Basically I am 22 years old, and employed full time in a decent job. I rent my own place with a friend of mine, and we comfortably pay all the bills and have a bit of spare cash.

Me and my girlfriend are looking at booking a holiday. Now its very hard for me to pay it all up front, what with the bills etc I need to pay each month.

So, I am looking for a decent credit card that will allow me to pay for my holiday over a period of time...

The holiday will cost me around £500-£600 to pay for. I would preferably like as long as possible to pay it back with the lowest cost.

I currently have a HSBC loan of around £1500 to pay for some stuff, this was taken out about 4-6 months ago now and I pay my repayment on time every month.

Will this effect me getting a credit card? I dont want to apply and get rejected.

I need to know the best card for my needs, i found this card, it looks good as I get 15 month intrest free on purchases.
http://www.barclaycard.co.uk/personal/credit-cards/platinum-purchase-may

Will this basically mean I can pay off the £600 in 15 monthly installments of £40?

Any advice please? or can anyone reccomend me a better card? Will I even get accepted for this card as Its the first time?

Sorry for all the questions, I am just a bit worried about doing something wrong. Thank you everyone!

bengalknights

As its within last 6 months it may have a detrimental impact best to wait it out possible or just save up.

CLAPTON

so
a loan from 1,500 for some stuff and a new debt of 600 for a holiday

stop while you can

learn to budget and save before you spend

In any event, it is completely madness to borrow over 15 months for a holiday that lasts a week or so.

Gilb501_2

Yes I had a loan, I needed it to make sure I had a secure way of getting to work everyday, had a lot of car troubles.

Thanks for your comment "learn to budget before you spend" - could you not just say that to everyone in this thread?

Prehaps a 3-6 month 0% purchase period would be better then.

YorkshireBoy

Gilb501 wrote: »

Prehaps a 3-6 month 0% purchase period would be better then.

I think you're missing CLAPTON's point.

The duration is irrelevant. The fact you're borrowing means you can't afford the holiday at this time...but could afford one later this year/next year if you saved up (being as you're intimating you can repay in 3-6 months).

That said, with no credit card listed on your credit report you have no history of managing revolving credit which a lender can base it's decision on. You may have to approach your bank, the one that receives your income, for your first credit card. Who do you bank with?

vixarooni

I went to majorca for 5 days with my boyfriend. Flights cost us £100, accomodation was the same, and we took £150 worth of euros. It cost us both £250 all in, and i only spent £100 of my euros!

If you bought the cost down then maybe you can afford to go away without using a credit card, wait until the schools go back when its cheaper and to extend your summer!

omas

Gilb501 wrote: »

Yes I had a loan, I needed it to make sure I had a secure way of getting to work everyday, had a lot of car troubles.

Thanks for your comment "learn to budget before you spend" - could you not just say that to everyone in this thread?

Prehaps a 3-6 month 0% purchase period would be better then.

Why can't you just save money for holiday? Last week I've had to spent all my savings on car (almost £2400). I've been saving this money to pay off my loan and look what happen. You never know what will happen in future and really it's better to save rather than to borrow. What would you do if you would need to repair your car and spend £1-2k? Will you borrow again? I've been down there, I know it's easy and nice to borrow and spend, but it's not to repay. I always been thinking that's nothing, until I woke up one day with £16000 debt!

CLAPTON

Gilb501 wrote: »

Yes I had a loan, I needed it to make sure I had a secure way of getting to work everyday, had a lot of car troubles.

Thanks for your comment "learn to budget before you spend" - could you not just say that to everyone in this thread?

Prehaps a 3-6 month 0% purchase period would be better then.

yues indeed, the answer as to how to borrow is often to 'save up' first

you say you are confortably able to pay all bills with a bit spare;
the reason to learn to budget is to learn to include all the other spending (holidays, xmas, birthdays, mates weddings, stuff, deposit for flats etc ).. if you did this you would probably find you can't comfortably afford all your bills

try this
http://www.makesenseofcards.com/soacalc.html

you already have a loan and you're now thinking of borrowing more for the holiday;
presumably that will mean you won't be able to save any money as you will be making the repayments;
so when something unexpected crops up, say like xmas, OH's birthday, bits and bobs you need etc you will borrow a bit more

and that will mean you won't be able to save so when...........

Gilb501_2

Thanks for all the responses.

Yes I could save up over the next 3-6 months, but thats too late to book a holiday then. I should have probably saved up earlier I know, but I didnt. So therefore I need to just borrow a little to go away. I will literally just be using the card for purchasing the holiday, paying back over 6 months, then never using the card again.

Its just a way me and the misses can go away this year.

I have been given a payrise this month, and also now earning commision so its no big deal about getting into debt.

Its just a quick fix to be able to go on holiday now, and pay later.

Some may think thats stupid, but I know I am sensible enough to not go crazy.

I bank with HSBC by the way.