Using a credit card to pay deposit on a flat?

sophiexjd

A LITTLE BACKGROUND INFO

Hi, I'm a 21 year old female from Manchester. Im currently a lodger in a friends house which is starting to turn sour. I have been a lodger, in bedsits and couch surfing since 16. Im desperate to get out. Myself and my boyfriend are planning on getting a flat together. I have been in my job about 2 months and he is due to start a new one next week. We know we can easily afford around 500 a month.
Now we will have to wait a few months until we have enough money for a deposit, first few months rent and any extra furniture etc.

MY QUESTIONS ARE:

Could I get a purchase credit card with the longest 0% deal, use that for my deposit and first month or twos rent, aswell as furniture?
Hopefully we would be able to pay it back before the 0% ends, if not we could move it to another credit card?
How do you know how much you can spend on the credit card?
Can you withdraw cash from the credit card with no charge?
Is this the best method of borrowing for someone in my situation?

Sorry for the long post, thanks a lot for any answers. I'm quite good with money but I've never even had an overdraft so the thought of having a credit card is quite scary!

Cheers

[Deleted User]

Does the landlord accept credit cards? I think it's unlikely.

Withdrawing cash would be a bad idea, so the only option is money transfer facility on a card. But if you've no financial history, then that is unlikely to happen.

I think you need to look at saving a little longer.

angelsmomma

I don't think the agent will take a credit card for rent. If you take cash then the 0% does not apply.

You may not get a 0% credit card in the first place with a big enough credit limit.

Have you factored in the cost of admin and credit checks for the flat agency which could easily be another £250.

Then you have to prove to them that your income is enough to cover the rent.


I'm sorry but I don't think this will work for you.

EDIT: Sorry I type slow and cross posted with zx81

sophiexjd

Thanks, I thought as much
ZX81, could I get one and just transfer the money to my normal account and do it that way?
But then again as angel said ... I have to prove my income so I will probably have to wait anyway.
I think I do have a good credit history as I have a mobile phone direct debit and have used wonga loans and paid back on time a few times.

Thanks for the replies anyway guys

CLAPTON

do you already have a credit card?
what do your credit reports say?
whta's your income

sophiexjd

I have never had a credit card before, and Ive never seen my credit report.
I earn between 600 and 800 a month and my boyfriend will be earning between 1000 and 1200 but he probably has an awful credit rating

Voyager2002

sophiexjd wrote: »

Thanks, I thought as much
ZX81, could I get one and just transfer the money to my normal account and do it that way?
But then again as angel said ... I have to prove my income so I will probably have to wait anyway.
I think I do have a good credit history as I have a mobile phone direct debit and have used wonga loans and paid back on time a few times.

Thanks for the replies anyway guys

Search this site for information about cards that allow a super balance transfer. That is what they call cards that let you pay money into your bank account (you tell the card provider that you are taking the money "to pay off my overdraft").

As others have said, this is unlikely to work for you. See if you can find a way to contact a landlord directly rather than through an agent, and you might reduce the amount needed for deposit and fees. And do ask advice from Shelter: there are some schemes for interest-free loans to cover deposits on housing, and Shelter would know if you qualify.

Meadows

Firstly the landlord may not take a credit card and secondly it could well be classed as a cash (bit like using cc in a cash machine to get cash) in which case you may well be charged an interest fee for a cash advance.

Try to go a little bit longer where you are if at all possible banging any excess money away for the deposit and although your boyfriend is in and working at his new job (don't forget a probation period) then you can not be 100% confident in your finances and being able to meet the cost of living.

Don't start out living together on debt as a small debt now can escalate later when you find money a bit tight.

CLAPTON

sophiexjd wrote: »

I have never had a credit card before, and Ive never seen my credit report.
I earn between 600 and 800 a month and my boyfriend will be earning between 1000 and 1200 but he probably has an awful credit rating

if you have never had a CC then it's extremely unlikley that you will get a 0% deal for a first CC. indeed you may find your credit limit is only a couple of hundred.
0% dals and decent credit limits tend to go to people with proven credit history of good financial management.

best to ask your bank for a CC as they know you manage your a/c well.
presumably you are on the electoral roll?

it would make sense to get a copy of your credit file so you can see what they say


why do you say your bf has an awful credit history?
if he does and you are linked financially to him then his poor credit history will trash yours too

Fruit_and_Nut_Case

sophiexjd wrote: »

I [...] have used wonga loans [...] a few times.

Wonga are seen as lenders of last resort and may ring alarm bells with potential CC issuers.

redpete

sophiexjd wrote: »

Could I get a purchase credit card with the longest 0% deal, use that for my deposit and first month or twos rent, aswell as furniture?

will you get a card - maybe, but probaly with a low credit limit;
could you ay deposit / rent - probably not, depends on whether the landlord is prepared to accept credit card payments;
could you buy furniture - yes.

Hopefully we would be able to pay it back before the 0% ends, if not we could move it to another credit card?

getting a second card will be harder (because you will already have the credit and debt on the first card).

How do you know how much you can spend on the credit card?

You are told what your credit limit on the car is.

Can you withdraw cash from the credit card with no charge?

No.

Is this the best method of borrowing for someone in my situation?

Too many unknowns to be able to say.