CC as a loan?

MFarris

Hi everybody, I am new to the forum. Apologies in advance if this thread/question exists already... I could not find it!

I would like to buy a new sofa, I have enough savings to pay for it straigth away. but I'd rather spread the cost over X months.
I do have an AMEX card already and I have been using it for a year and always repaid my balance in full each month, I was now considering the idea of applying for a Tesco CC with 0% on purchases for 18 months, buy the sofa (and possibly a few other things) and repay it in time before the 0% expires. Once everything has been repaid I would close the card as I would not need it anymore (don't like the idea of 2 credit cards).

Now the question is: Would that affect in anyway my credit rating?

Thank you in advance for the consideration, have a great weekend

CLAPTON

MFarris wrote: »

Hi everybody, I am new to the forum. Apologies in advance if this thread/question exists already... I could not find it!

I would like to buy a new sofa, I have enough savings to pay for it straigth away. but I'd rather spread the cost over X months.
I do have an AMEX card already and I have been using it for a year and always repaid my balance in full each month, I was now considering the idea of applying for a Tesco CC with 0% on purchases for 18 months, buy the sofa (and possibly a few other things) and repay it in time before the 0% expires. Once everything has been repaid I would close the card as I would not need it anymore (don't like the idea of 2 credit cards).

Now the question is: Would that affect in anyway my credit rating?

Thank you in advance for the consideration, have a great weekend

it would appear on your credit record

any lender you apply to would have assess to that data and would use it as they will

MFarris

Thank you Clapton, I was wondering If I repaid everything in full without being charged any interest... technically that would be a good thing right?

bigadaj

So long as you repaid within the 0% period then you would potentially make money from the money in a savings, or more probably current, account.

Using credit reasonably should make your file better, not sure why you woudknt want to keep two credit cards though, always useful to have a backup and many people have several for different purposes. I currently have five for cashback and benefits and for overseas travel, and always like to have at least one amex, visa and MasterCard to ensure acceptance and have an alternative if networks have problems.