Credit card for wedding purchases?

u4n90

Hi, I'm getting married in August 2013 and have budgeted for £5000 worth of expenses and costs for my side of the wedding, (parents and OH can cover the rest).

I earn £1100 a month and have no savings. I am contemplating a loan or a 0% Tesco credit card for 16months and would like to know which is best.

I know I can earn and save £5000 between now and next year when the 16months are up, so that's not an issue, it's just that i need the money now and wish to pay it off slowly over the next year or two with little to no interest.

Bearing in mind i want £5000, would a loan or credit card be better?

EDIT-having a proper read of the terms i think 5 grand is optimistic, still does the card or a loan work out better?

unimaginative_user_name

Do you have a credit history? You may not get a 0% deal with a high enough limit for the credit card idea to work, though if you can pay it back within 16 months it would be cheaper than a loan. You do realise you will have to make minimum payments even during the 0% period, and if you go over your limit, fail to make a minimum payment or pay late you could lose your 0% deal and start paying interest on the whole amount.

lippy1923

Depending on your credit rating and how well you have managed your accounts in the past, a 0% credit card would be better option as its cheaper than the loan, you can set up a DD for the min payment and over pay as much as you want each month.

What other types of credit have you had in the past? Any nasties on your credit files?

u4n90

I have no credit history and have never applied for a loan or credit card before. Once August has passed my OH and i should make enough to cover the minimum repayments. Is there a better alternative for £4000-5000 upfront? I've looked at loans but i don't want to make a more costly choice.

lippy1923

If you have no credit history OP then a loan from your current bank may be an option. Its unlikely you will get a 0% cc with that sort of limit straight away. Speak to your current bank and see what they suggest.

Jules2012

Credit card with 0% is probably your best option. Although you may not get a £5000 starting limit, so may need to think about more than one card if you have a great credit history.

u4n90

I'll be renting a house for about £400 after August. My partner makes the same as i do, so £2200 minus rent and expenses should see us alright within a year. The only reason i am wary of including her is she has only recently come out of a bad credit situation and paid off all her cards and debts. Some posters are suggesting the card but unless it's in the £3000+ range, whilst helpful it doesn't cover the sum. Would a loan be better then?

lippy1923

A loan will most likely be your best bet as you have no pevious credit history.

jonesMUFCforever

OP if you have no savings we have to assume that you spend all of the £1100 you earn - how will you manage to make the minimum payments and more importantly the actual capital balance repayment at the end of any promotional term?

You say that you will be paying £400 rent after the wedding - what about council tax, contents insurance, water rates, electricity gas and food before you start on clothes, furniture and going out?

inmypocketnottheirs

The best bet?

Save up first, get married later.

Why start out together in debt?

lippy1923

inmypocketnottheirs wrote: »

The best bet?

Save up first, get married later.

Why start out together in debt?

While I agree with this (I would never get into debt to pay for a wedding) it appears the OP has already made commitments so would stand to lose a fair amount on venue bookings... unless they ask and see if they can change dates?