Credit card graduates moving house

stothy862

Hi all, long time no post!

Me and my partner are moving house next month as we both graduate this year. We both have good savings for students but moving house means we will have a large outgoing in the first month. However we don't start work until August / September so our first paychecks are some way off. In that time we have 3 months rent and a deposit to cover, furniture (most will be handmedowns and freebiees but will be purchasing some items), season tickets for travel to work and hopefully a holiday to celebrate graduating and entering the working world.

We were wondering as our savings won't cover everything and our parents can't offer us much, would it be wise to take out 0% payment cards to cover the next few months and pay off any debts with our first few paychecks?

We think this is best as we have budgeted and will easily be able to pay off any debts before the no interest period ends, we will be able to settle in quickly and possibly treat ourselves too. It will also help build our credit score as we have already started to budget for a deposit for a house tootoo, including opening help to buy isas (payments in may have to stop if we don't use this strategy).

However we are worried we may be rejected as we haven't yet started working and are technically still students. What is the ruling around this? Will we be accepted if we can prove we have a source of income.

Can you help us and explain to us if this is safe route to take if we budget accordingly, paying off the minimum each month until we can afford to pay it all off. Or will we likely be stung down the line with nasty interest rates? Also are we likely to be accepted given our situation? I'm not sure what to enter on the free tool in our situation to check ourselves! Thanks in advance.

grumbler

0% card is the best option, but what income do you have that you can prove?

As students/graduates do you not have student/graduate current accounts that normally come with free overdrafts?

boo_star

Would a credit card work in this situation?

Typically landlords don't take credit cards and there is the other downside that most utility companies will hit you with a fee (around 3%) for paying by CC.

Bear in mind that you'll need enough money to pay the minimum every month until you get your first salary.

stothy862

We have overdraft but our student accounts become standard current accounts very soon.

Would it be best getting a Cc with 0% transfer cost and a decent current account and transfer to the current account from the CC every month depending on what we need? Or as we have enough savings for bills and rent just use the CC for purchasing things? We would be cutting in much finer if we did this.

We have enough money to cover minimum repayments though, thanks for considering that!

grumbler

boo_star wrote: »

Would a credit card work in this situation?

Typically landlords don't take credit cards and there is the other downside that most utility companies will hit you with a fee (around 3%) for paying by CC.

They have some savings apparently.

stothy862 wrote: »

We have overdraft but our student accounts become standard current accounts very soon.

• Graduate Accounts 2015/16

Would it be best getting a Cc with 0% transfer cost and a decent current account and transfer to the current account from the CC every month depending on what we need?

It has to be Money Transfers, not just 'transfer', but such cards are more difficult to get (see eligibility checker inside).

Or as we have enough savings for bills and rent just use the CC for purchasing things?

Absolutely, although don't hold your breath even for a 0% on purchases. Graduate accounts are more realistic IMO.

stothy862

Thanks @grumbler, hadn't considered a graduate account, fantastic thank you, will look into it further but does seem like our best bet right now.

Voyager2002

Do you need to pay rent and bills over the next few months, until you start work? It would actually be cheaper to leave your things in your parents' home and go somewhere cheap and sunny like Thailand! Or you could just live with parents until you are close to starting work. That would mean a rush to find a place to live then, but most people do things that way round.

As others have said, you are unlikely to be offered interest-free cards before starting work. With a bank you can show them the job offer letter and they can consider it, but credit cards don't work like that. And this is one time when borrowing makes sense...