What's the chances?

fawnsinthegarden

We need new furniture, ours is second hand (by several generations and falling to pieces) sofas have huge rips, the table is not big enough for our family etc etc.

I don't have a bad credit history, perhaps more limited? Had a store card for around ten years never used, and credit cards for two months and paid balance off each time. We are looking at approx £2k for the furniture for the whole house. Is it even worth applying or should I wait? It's needed replacing for the last two years and my available credit is perhaps at 5% usage but not enough to buy the furniture on card, just the sofa's yes but the furniture is on 4 years interest free. My available credit is less than 15% my wage and the payment is easily affordable.

Should I wait any longer for furniture or do you reckon two months of active credit history is enough for an acceptance?

TIA

27col

You may need new furniture, but do you actually need NEW furniture. I am sure that you could do very well at somewhere like the British Heart Foundation shops. That way, you would not be straining to finance it with an interest bearing loan.

fawnsinthegarden

I know I don't need NEW furniture, but we have had second hand for 10 years, I am a firm believer of buy cheap buy often, buy good quality buy once, I intend to pass our furniture to our children. Our sofas were second hand are 10 years old with huge rips in, the do need to be new really.

It's not a case of lacking funds, we can afford to pay the furniture off within a year, but because of a new addition to the household furniture which is literally falling to pieces isn't safe for a child who will eat anything including sofa stuffing. It just seems silly to waste money on more junk furniture knowing we can afford to pay off decent solid wood furniture within a year?

It just seemed ideal as it's 4 years interest free, and ;ooking to pay off within a year. I just didn't know if lack of active history would bbe a big red alert. Like I said I have had a store card for ten years only used one time.

dealer_wins

Devils advocate here.. If you havnt managed to save up anything over the last couple of years, it means that your income is 100% used, so how will you be able to afford loan repayments?

fawnsinthegarden

dealer_wins wrote: »

Devils advocate here.. If you havnt managed to save up anything over the last couple of years, it means that your income is 100% used, so how will you be able to afford loan repayments?

We have saved, or should I say, I have.

Unfortunately car trouble has cost us a fair fortune the last year unexpectedly. And having a second born the cost of buying everything again has been expensive. And moving house, moving costs, re carpeting as there were no carpets here etc.

You seem to be judging me on poor credit management and that is far from the truth, very much a case of life events. We have put off marriage because it is unaffordable, and not tangible unlike furniture which is needed and tangible.

I can assure you I would never borrow what I couldn't afford, been there learnt my lessons, I was asking more if that having limited history ie two months of credit card bills paid in full, and ten years of a store card only used once, and only 15% of my salary available in credit hence not putting it all on credit cards on interest free.

It's 2k I earn £24k personally. Is it worth applying now given my limited history or should I wait? It's 4 years interest free, but will be paid off within the year, due to mortgage aspirations.

Tixy

Most places offering interest free credit effectively build the cost of the credit in to the item price. For example an item costing £1800 from a places offering 0% credit may only cost £1500 from somewhere else.
So if you do decide to try to get credit for these I would double check the prices of the goods are competitive.

I would think with only a limited credit history and having recently taken out 2 new credit accounts you may struggle to get accepted for this credit right now, but the only way you will know is if you apply.

fawnsinthegarden

I understand that, which is probably why its best to buy interest free rather than cash and struggle for a few months.

But generally solid wood furniture is expensive, cheapest place does 4 years interest free. It's not fancy stuff, just not chipboard rubbish.

If you were in a similar situation, would you apply now or wait until another say 4 months? Two credit cards taken out in early March, One used but paid off in full, and the other used once and paid in full. I have a 10 year old store card never defaulted and paid on time in the first ear not used since.

Maybe I will pay cash then instead of a rejection but knowing emergencies can require money immediately and cause significant problems, I was hoping to do it on credit and show that I can pay off a credit account quickly despite interest free.

I guess the fact I haven't had loads of credit before has worked against me. I would hate to apply and get refused. I know no one could say for sure but I would assume with my salary, with my reasonable history and only at circa 15% they may be lenient as it's against goods that could be repossessed.

I assumed it would be better to apply on credit and pay in full quickly than pay in cash, maybe I best pay in cash.

Thank you, it's food for thought.

BillJones

You do not need to buy the furniture all at once, so don't.

As to wanting to save cash for emergencies, you are about to commit to many months of non-negotiable payments despite not currently living within your means. These "events" that you say use up your spare cash, they don't stop, they keep happening, for ever, and need to be included in your budgeting.

dealer_wins

There is always a plausible reason why no savings have been built up.

But it always means "we spend all our income, manage as best we can with emergencies"

Sorry but if you have lived the last 2-3 years without building up a savings pot, you CANNOT afford a loan!!

-taff

I would look at replacing your furniture from plces like ebay where you can get solid pine double wadrobe for up to a £100 etc.
Freecycle still has good wood furniture, as do the charity shops, scrapstores etc.
I am also voting with if you had pots of emergency money, but then spent them on emergencies or otherwise, then the chances are that of budgeting in a loan is going to throw you out.
A 0% CC would seem a better option than a horrendous rate apr loan, as you say you canpay it all off. Give you a bit of leeway if you can't too.

DCFC79

Do away with tables and chairs and sit on the floor to eat like they do in Japan.