Paying for a boiler

InhaleMood

Hi all,

I have just had a new boiler installed, costing around £3000.

I am about to pay the invoice, but just wondered if there was any way to put it on a card and pay it off gradually.

I have the cash, but would like to keep a rainy day fund if possible.

The installer doesn't take credit card and I need to transfer the funds electronically.

Is it possible to do this on a credit card, or it is best just to use the cash?

Thanks,

Tanya

glentoran99

does your card allow balance transfers into a bank account?

thebritishbloke

You'd have to get an MBNA card, these offer "Super balance transfers". This basically means they let you transfer money to your current account for a fee (4%) and then it's at 0% for a number of months (up to 32).

Tixy

Have you got the credit card or would you be applying for a new one.

An MBNA card would allow you to transfer the funds to your current account to then use to pay for the boiler. It has a 4% fee for the transfer but then allows you to pay off the debt over the interest free period, providing you pay at least the minimum each month.

So if you could get accepted for an MBNA card offering 0% on balance transfers for a high enough balance you could do this.

InhaleMood

I don't have a credit card at the moment - would be getting it just for this purpose. Thanks!

InhaleMood

So, at 4% I'd be paying an extra £120, which seems fair enough considering I'm getting 3% with Santander.

How long do these things normally take? I need to pay the invoice by the end of the week.

Tixy

It would probably be unlikely to get the funds that quickly.

There is a small chance it could happen in time if you ask them to do the transfer when making the application and if you get an instant acceptance with no need for any further information from you, but I wouldn't count on it.

That said you could presumably use your savings to pay the boiler and then replace them once the money transfer funds are transferred to your current account (assuming you are accepted). Are your savings in an instance access account with no penalty for withdrawing?

InhaleMood

That was going to be my next question! I think that will be the best option, I'll pay it now and then wait to see if I'm accepted. If not, I haven't lost anything.

Thanks for your help

SuiDreams

tanyasharma wrote: »

So, at 4% I'd be paying an extra £120, which seems fair enough considering I'm getting 3% with Santander.

How long do these things normally take? I need to pay the invoice by the end of the week.

If you are a tax payer you will be getting less than 3% (2.4% net of tax) on Santander, but still pay the full 4% on the Balance transfer. It also depends on the length of the 0% period on the balance transfer e.g. if only 6 months cost 4% for BT but interest on savings will be approx only 1.2% for the full amount (net of tax) as the 3% is yearly rate, if for example the 0% is for 24 months the interest recieved would be a total 4.8% net of tax (for a 24 month period). Plus you would need to make monthly minium payments on the credit card each month. I hope this makes sense.

InhaleMood

Yes that makes sense, thank you. I think this is a good option for me tomorrow, as I still have the cash in my bank account as a rainy day. I'm a single income household so that security is really important to me.

Thanks,

glentoran99

rather than paying the interest etc on the credit card though wouldnt it be better to have that as your "rainy day" rather than the cash, that way you have no interest to pay and could build up your rainy day fund again rather than paying for credit, unless you need it