Applying for both loan and credit card

mymindisbroken

Hi all,

I'm looking to take out a personal loan to buy both a car and a motorbike, plus cover a few other associated expenses. Having looked around, I can take out a loan to cover the whole of the amount I've budgeted for, and the eligibility calculator here has given me a 95% chance of being approved for the current lowest rate for this amount.

However, there are also some very good looking deals on credit cards around, and the eligibility calculator has also said I am 100% pre-approved for the Barclaycard with 25 months interest-free (although the monthly payments will be more as I am looking at a 5 year loan).

Therefore what I would like to do is take out a credit card, and once I know the interest-free credit limit, apply for a loan to cover the remainder.

My issue is that without applying, I don't think I can find out what my credit limit will be, and I don't know whether applying for a card will then reduce my chances of being approved for the loan. I don't want to make an assumption on my credit limit and then be left short on the amount I need, or end up borrowing the full amount as a loan to find that 1/4 of it could have been interest free.

We have a reasonable household income split pretty equally between my wife and I, so should we each apply for one of them, or apply jointly for both? How much impact will the credit card application have on a loan application shortly afterwards?

Any suggestions or advice gratefully received!

Gambler101

Have you been saving the repayment amount for the last few months, or is your lifestyle going to take the hit of the new repayments?

mymindisbroken

Fair question - the need for all this arises from a new job. I will no longer be getting a company car, but will get a car allowance, in addition to a decent pay rise.

The budget for spending has been calculated from the net take-home amount from the car allowance, which informed the total I would then look to borrow. The pay rise will mean a net improvement to monthly income even after repayments on the borrowing.

mymindisbroken

Well I think what we're going to do is that I'll apply for a loan in my name, and my wife apply separately for a credit card. Unless there's a better alternative?

Nebulous2

Apply for a loan for the full amount. As soon as it is is paid to you apply for a money transfer credit card ( in either name.) Then money transfer the maximum on the card and pay off the equivalent amount on the loan.