Real World Credit Card Advice

Lowermax

Hi,

Here's a real world problem that im sure some people wont agree with but could do with some advice on.

I have a credit card and need a little advice on where to go next.

I currently have about £1500 on a 0% balance transfer card which runs out in January 2015. I will have the amount paid off in full by then but we need to pay a deposit on our honeymoon of around £1000. We will then be planning on paying for the rest on a 0% credit card which will obviously be paid off after the wedding.

Do I:
A. Use my current credit card to pay off the deposit meaning i then get another 0% balance transfer credit card deal in January.

B. Use some of our savings and get a 0% Spending card in January and use it to pay for part of the wedding.

Going with option A would mean my Fiancee needing to sign up for a 0% spending credit card after the wedding to payfor the honeymoon

We are both financially stable enough to manage this dept but obviously don't have the funds with having to pay for the wedding over the coming months.

Any advice would be much appreciated

PeacefulWaters

C) Get a 0% purchase card and pay the deposit with that, saving a future balance transfer fee.

D) Get an incentivised card (cashback, air miles etc), pay with that and clear the balance in full with savings.

Lowermax

Thanks for the quick reply PeacefulWaters!

I may be being a little naive here but with me already having 1 credit card which I think has a £7k limit, would I be able to get another? I know that question is a bit like how long is a piece of string but I've always been under the impression that I wouldn't be able to get another (not that I have a bad credit rating).

My other point/question to those suggestions is that if I was to get a 0% spending card closer to the time of paying the remainder of the honeymoon off then it would give us longer to spread the cost of paying it off.

InsideInsurance

Lowermax wrote: »

Thanks for the quick reply PeacefulWaters!

I may be being a little naive here but with me already having 1 credit card which I think has a £7k limit, would I be able to get another? I know that question is a bit like how long is a piece of string but I've always been under the impression that I wouldn't be able to get another (not that I have a bad credit rating).

My other point/question to those suggestions is that if I was to get a 0% spending card closer to the time of paying the remainder of the honeymoon off then it would give us longer to spread the cost of paying it off.

As you say, I predict you have a 45.2135% chance... of cause thats simply based on the info you have provided to date which is simply one cards limit.

0% offers normally start from when the card is issued so yes if you get one in 6 months time you'd get an extra 6 months to pay it off but that assumes the same offers are available then as there are today. They could be longer, and i was a betting man I would say the odds say they are, but they could also be shorter.

Remember also that travel companies are one of the most common to charge extra for paying by credit card whereas things like hotels and florists rarely do

Plus I'd always question if the best start to married life is a big new debt. We delayed our honeymoon a year to avoid this (plus a couple of other reasons)

Lowermax

Thanks InsideInsurance! How on earth do you work out that exact percentage?

I have another credit card which has nothing on it, should I cancel this card as i haven't used it for over 18 months now.

i guess that is a risk we will have to take, on the deals still being around next May/June!

Fortunately trailfinders (the travel company) don't charge extra for using a credit card so we are safe there.

As for your words on starting married life with a debt, normally I would be in complete agreement with you on that! and thanks for saying it too! however we have lived together for a number of years now and own our house and cars and want to do the trip of a lifetime before fully settling down.

Thanks again for both of your replies!

lynnejk

I'm not a financial expert but I wouldn't cancel any credit card I have as they all help your credit rating if you have run them correctly.


If you have 0% credit cards I would make the most of them and use them for everything whilst storing any funds in an interest earning account and paying off when 0% finishes.


If you know you have the funds to back up your credit then I would go ahead with your plans.


However, it is never a good idea to max out so that if any problems arise you are having to pay to borrow money. Always have a backup of at least three months credit


That's my tuppence worth and HTH
Lx

InsideInsurance

Lowermax wrote: »

Thanks InsideInsurance! How on earth do you work out that exact percentage?

I have another credit card which has nothing on it, should I cancel this card as i haven't used it for over 18 months now.

Its a gift I have.

Again, too little info to even hazard a guess of if you should cancel the other card or not. Credit assessment is a balancing act of many different things and is complicated by the fact that not all companies like the same balance. Infact here they are all different.

So most lenders like to see that others trust you, particularly if you've had it for some time with a decent limit and running it well. On the flip side they will ask themselves of if you could afford to service more debt if you maxed out everything you already have and what they are considering to give you plus they like to see you have seen some agreements through to conclusion

Lowermax

I'd just like to thank you all for your advice, it has made us realise that we really would be pushing ourselves and risking a lot to pay for this on a credit card. We're going to re-assess in the new year closer to the wedding and see how much we have saved to pay for the honeymoon up front.

Thanks again! I knew people on the forum would help out with this decision!