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A few questions from a newbie

Hi
I'm just starting my own business so I'm now self employed. I need to buy a bit of equipment and I thought a 0% credit card would be a good way to do this. But I've never done anything like this before.
I think I should have a good credit rating, I've never really had any debt apart from my student loan and student overdraft. I have a credit card which I pay off in full each month and we have a mortgage which we've never had any problems with.
The equipment I want to buy is around £1500.
So I've been reading about 0% credit cards and I think I understand it - so if I buy the equipment and then work out the total divided by the number of months intrest free and set up a direct debit for that amount, there shouldn't be any extra unexpected fees. Is that right?
It would be better to do it that way rather than buying it on my current credit card and doing a balance transfer becuase there is a fee for balance transfers?
Will there be any problems with me being self employed and having just started my business? As business is only just building up I don't know what my earnings will be. I know that I will have enough for the monthly payments, but will the bank require proof of income?
Thanks in advance for your help!

Comments

  • Dafbod wrote: »
    ...work out the total divided by the number of months intrest free and set up a direct debit for that amount, there shouldn't be any extra unexpected fees. Is that right?
    Most cards will let you set up a DD for either the minimum payment or the full payment, not a specific sum. The best way in your case would be to make the minimum payment each month and for you to put any extra in a savings account, ready to pay off the full balance in the final month. You won't get rich on the interest but it would be better than letting your CC provider have it. :)
    Are you for real? - Glass Half Empty??
    :coffee:
  • leeroy2009
    leeroy2009 Posts: 591 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    yes but you wont be able to set up the direct debit for the amount you want, well in some cases you can, much better to have a direct debit set up for min then you pay the extra manually, no extra fees if you abide by terms and conditions.


    self employed may cause problems, not sure if a personal card should even be used for business expenses?


    and maybe as your business is new would you not consider maybe buying cheaper equipment for now, then upgrade when your on your feet? and everythings fine


    or if you want to get further into this money saving game, the post above is good advice with saving, paying the min, then pay the full balance at the end but you will need to very well behaved and organised!
  • Thanks
    This is cheap equipment if I wanted to I could easily spends £20,000 on this kind of equipment, as it is I've been gradually buying bits off ebay for some of it and this is the cheapest I can get the main part of it for.
  • leeroy2009
    leeroy2009 Posts: 591 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    Dafbod wrote: »
    Thanks
    This is cheap equipment if I wanted to I could easily spends £20,000 on this kind of equipment, as it is I've been gradually buying bits off ebay for some of it and this is the cheapest I can get the main part of it for.



    nothing wrong with ebay mate that's where all my gear comes from too, good luck with your business
  • I could just about afford to pay for it in full at the moment but it would then leave me without any back-up and as I'm only just starting out I'm not sure how much I'll be making each month at first so may need that little extra to cover the bills etc. Hence why I thought a credit card would be a good way to do it.
  • leeroy2009
    leeroy2009 Posts: 591 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    Dafbod wrote: »
    I could just about afford to pay for it in full at the moment but it would then leave me without any back-up and as I'm only just starting out I'm not sure how much I'll be making each month at first so may need that little extra to cover the bills etc. Hence why I thought a credit card would be a good way to do it.
    a 0% credit card will be the best way to do it, why don't you try your own bank first, use the softsearch app on here (but take with pinch of salt) or try nationwide soft search as well as Barclaycards and mbna
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