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Will a personal loan affect 0% CC eligibility?
Options
RandyMarsh
Posts: 1 Newbie
in Credit cards
As my situation currently stands, I am in my early twenties, I have no bad credit what-so-ever and no missed payments. I have had a 0% CC for 18 months which is about to come to an end with only a small amount left to pay off. As well as that, I have a CC which is just used for worldwide spending now untouched with nothing owing on it. I have no other long term debt.
I am about to buy a car from a friend as I currently drive a beater which is costing too much in repairs way too often. I could just use savings if I wanted but I am considering loaning £4000 over a few years which will then also contribute towards my credit rating showing I can borrow and pay back on time.
As my 0% CC is about to end, my plan was to apply for another long-term 0% credit card, as I usually use it as a much cheaper option of financing my car insurance as to avoid paying 20% APR on insurers monthly payments, as well as any unexpected costs which has been a life saver!
My question being, Will having the loan seriously affect my eligibility to get another 0% card even though I have no bad credit history or missed payments? Am I better to just pay for the car with my savings? My plan was to pay off around £1000 - 1500 of the loan once I have sold my current motor anyway.
Or are there any better options which I am missing?
Thank you!
I am about to buy a car from a friend as I currently drive a beater which is costing too much in repairs way too often. I could just use savings if I wanted but I am considering loaning £4000 over a few years which will then also contribute towards my credit rating showing I can borrow and pay back on time.
As my 0% CC is about to end, my plan was to apply for another long-term 0% credit card, as I usually use it as a much cheaper option of financing my car insurance as to avoid paying 20% APR on insurers monthly payments, as well as any unexpected costs which has been a life saver!
My question being, Will having the loan seriously affect my eligibility to get another 0% card even though I have no bad credit history or missed payments? Am I better to just pay for the car with my savings? My plan was to pay off around £1000 - 1500 of the loan once I have sold my current motor anyway.
Or are there any better options which I am missing?
Thank you!
0
Comments
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Best way is to use savings then build them back up.
Continue to use a card regularly to improve your credit file.0 -
If you have the savings then just use them, I don't think that getting a loan and paying back on time would help build a credit rating (if yours is already ok).
Although saying that Iv'e got a loan and a new 0% credit card in the same month before.0 -
MSE: Repay Debts or Save?
There are much cheaper and free ways of "contributing towards credit rating" than paying interest on a loan.0 -
MSE: Repay Debts or Save?
There are much cheaper and free ways of "contributing towards credit rating" than paying interest on a loan.
Yes, and the bizarre thing is that the OP already appears to be doing them.0
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