Applying for different types of credit at same time

sebcragg

I am going to be refurbishing my kitchen and need to take out credit to pay for some of it. Am i better off getting one larger loan or spreading my credit across a smaller loan, the kitchen companys interest free credit option and an interest free (for 20months) credit card?

The total amount loaned would be the same in both cases.

The second option seems finiancially to make more sense as we pay less interest but I am concerned about getting rejected if I apply for the loan, the kitchen credit and the credit card all at the same time.

My wife and I have a mortgage and a credit card each (which are used rarely and paid off in full each month).

Any advice would be very helpful.

Tixy

There is a chance that 3 applications close together could mean you are more likely to be declined for the 2nd/3rd.

If you are both earning enough to be likely to be accepted on affordability then you could split the applications between the 2 of you?

Another option you might want to consider is asking the providers of the 2 existing credit cards have any offers on those cards, which if they did may negate the need for one of the applications.

Another benefit of not just using a loan is the additional purchase protection you would get from using either a CC or the kitchen company's 0%.

andyfromotley

Apply for one 0% purchase credit card, pay for it all on that. BT to another 0% at the end of the term.

This will almost certainly be the cheapest way of doing it if you have the credit history to get the cards.