Loan vs 0% Switch Credit Cards

grumbler

It wasn't my assumption, but if you insist...

It is reported - fact.
It can be ignored by banks, but if it isn't and if it isn't a promotional deal, then both a simple logic and common sense suggests that the only way it can be interpreted is negatively.

nigelpm

grumbler wrote: »

It wasn't my assumption, but if you insist...

It is reported - fact.
It can be ignored by banks, but if it isn't and if it isn't a promotional deal, then a simple logic or common sense suggests that the only way it can be interpreted is negatively.

Of course this will depend on the bank but they tend to be more interested in affordability hence will be well aware of those stoozing who every 18-24 months pay the balance off in full and re-start minimum payments.

Of course if the individual is genuinely making minimum payments because they can't afford to then that's a different matter.

My point is that bank have pretty sophisticated systems (and I do know this for a fact) and will be able to work out one (stoozer) from the other.

nigelpm

grumbler wrote: »

It wasn't my assumption, but if you insist...

.

Apologies, because you replied to it I'd assumed it was

thatwilldo

Well purely from a financial sense the cards are cheaper. However I can relate entirely to the months when you drop your payments to cover other expenses and sometimes it's an easy option to do this. For me I would seriously consider the loan, your payments will be disciplined, it will be easier to manage and you have an end date in sight.

Oh and don't forget to close some of your credit card accounts if you get the loan.

Best wishes

fd1972uk

grumbler wrote: »

For this try Debt-Free Wannabe and Boost Your Income boards.

This is incorrect. There are the T&C binding for both your and the CC company.

Yeah, thanks I know about those boards (already got a thread in DFW), just putting down the other info on income in case it cropped up as I was wanting to get the opinions on the question asked instead of people throwing these other suggestions in, which I already know about.

As for the 0%, as said to Goodkat, yeah I know that the 0% will stand for existing customers, but as per Capital One who introduced it, they've now pulled it off the market, just as everyone else can do so if they wish. It was just something pointed out that it could be removed at anytime (outwith offers already uptaken) so not to take it that your 100% guaranteed of a 0% offer.


FD

JKSandy

"My point is that bank have pretty sophisticated systems"

That's funny when over the last couple of years their IT systems have crashed, they are constantly in the press for erroneous errors and most of their online/mobile banking is clunky.

fd1972uk

thatwilldo wrote: »

Well purely from a financial sense the cards are cheaper. However I can relate entirely to the months when you drop your payments to cover other expenses and sometimes it's an easy option to do this. For me I would seriously consider the loan, your payments will be disciplined, it will be easier to manage and you have an end date in sight.

Oh and don't forget to close some of your credit card accounts if you get the loan.

Best wishes

Thanks, yeah, this is my thinking.

As you said sometimes it may happen and that's why I was also thinking of the loan option. It seems more set in stone, albeit I guess that going down the payment via 0% should be quicker and has a little more flexibility although granted that might not be the best option.

Decisions, decisions, LOL.


FD

fd1972uk

I'm fine with the whole 'minimum payments', so hopefully any more input to the thread will relate to the question and not banking scoring.

Thanks


FD

grumbler

JKSandy wrote: »

"My point is that bank have pretty sophisticated systems"

That's funny when over the last couple of years their IT systems have crashed, they are constantly in the press for erroneous errors and most of their online/mobile banking is clunky.

Sophistication of the credit scoring algorithm has nothing to do with the reliability, but generally, the more complex the system, the less reliable it is.

nigelpm

grumbler wrote: »

Sophistication of the credit scoring algorithm has nothing to do with the reliability, but generally, the more complex the system, the less reliable it is.

More importantly, the systems that have fallen down tend to be the public facing ones which deal with millions of transactions daily and aren't the credit scoring ones.