Wedding

steveyg_uk

Good morning,


I'll keep this brief as best I can.


Planning on getting Wed in May 2015, thankfully we only have to pay for half of it which leaves @ £5k.


Question - Is it best to get a 0% purchase card, then when the offer ends shift the debt or to get a loan?


I understand that shifting debt means I pay anywhere from 1.9 to 3.1% in fees, but I believe this to be cheaper than getting a loan? As APR is applied every year at a rate of say 5.9%? Whereas a credit card is a one off fee, as long as you make the payments on time so you don't loose the 0% deal. Obviously I'll be making more than the minimum payment, and won't want to apply for one until a few months before the wedding to maximise the '0'% offer.


Thoughts appreciated.

CLAPTON

the best way of funding a wedding is to save up for it and to marry debt free.


however
if you can be sure
- that you can get a 0% purchase card for 5,000
and
-you can get a subsequent 0% BT card for whatever needs to be transferred
and
-your wedding costs can be paid on a credit card

then it may be the cheapest way other than saving.

however knowing nothing of your credit situation or your income or the suppliers you will be paying, it rather difficult to say.

steveyg_uk

Many thanks for getting back to me.


I am on good money, credit score of 998 and no issue with obtaining money. I am strict and disciplined when it comes to offers and always set reminders.


Thank you

tinkerbell28

Who is the 998 score from? The bank who you want to lend you 5k? Or do you mean the really irrelevant score that lenders don't see from experian?

steveyg_uk

lol - that is correct in a way about the credit score, but it's a good indication.


My bank has already said I can get 35.5 k, I already have an offer on the a card for 9K but I said I only want 5K so it's in the bag. The offer doesn't actually start until the first item is purchased, I just wanted to explore all avenues and double check my sums before going ahead with it.

tinkerbell28

steveyg_uk wrote: »

lol - that is correct in a way about the credit score, but it's a good indication.


My bank has already said I can get 35.5 k, I already have an offer on the a card for 9K but I said I only want 5K so it's in the bag. The offer doesn't actually start until the first item is purchased, I just wanted to explore all avenues and double check my sums before going ahead with it.

No it's not. Great my bank has said I can get 25k. Generally the maximum of unsecured lending. So 35K I don't believe that frankly.

The experian score is NOT a good indicator of how you will be scored by a lender for revolving credit. It is always easier to get a card with your own bank.

Your plan is only a good one. If you know you'll be able to shift the debt or pay it off. So if you'll know for sure you'll get accepted for a different card in 18 months or so with a prime BT offer. No one can tell you that.

Could you not pay the 5k off in 18 months just in case ? Or save?

krustylouise

steveyg_uk wrote: »

Many thanks for getting back to me.


I am on good money, credit score of 998 and no issue with obtaining money. I am strict and disciplined when it comes to offers and always set reminders.


Thank you

If you're on good money, why don't you save up and pay for it without using credit? You have plenty of time. We are getting married in October this year and we are saving and paying as we go along.

YorkshireBoy

tinkerbell28 wrote: »

So 35K I don't believe that frankly.

It's £5.5K. OP forgot to press the shift key.

CherlokHomes

The OP even tried to make it more realistic by putting .5k

thriftylass

Agree, if you're that good with money and only need 5k for a wedding in over a years time, save up. We're getting married in September for about 7k all in and trying hard to save the money and we'll keep borrowing money as a last option just in case we don't make it.

Ed-P

Hi Stevey,

I see that people are suggesting not getting a credit card for the wedding, are you sure you definitely need it? This may just extend the financial stress of your wedding into your marriage. You could opt for a prepaid debit card which has no impact on your credit rating and won't leave you in debt, but you have the benefits of using it just as a credit card. Could this be a better option than getting a credit card and possible debt, plus interest? They seem to work really well for budgeting, especially if you have an end goal in mind. There are a few different companies around that do it, Netella is one that I have been recommended by a friend before. Perhaps take a look at their website and see what you think.

If this is not an option, are you sure that shifting the debt is cheaper than a loan? In my experience there can be hidden complications and it might be better to simply take out a loan, and arrange a payment plan to repay it after the wedding. If you stick to this it can be efficiently paid back without all the hassle of shifting.

Best,
Ed