Thinking of a credit card for an engagement ring

haxor

Hi there,

I never thought about getting a credit card before and I'm no expert in this field.

I own a property - no mortgage , age 26 , stable job earning around 25k + bonuses.

I've started looking for engagement rings and it's going to be a quite big expense,please bare in mind that I know that I should've save up instead of getting a credit card but at the moment this is not an option as I'm already saving up for other expenses that will come soon.

I've seen many credit cards offering 0% for 2 years + ? if I can get one of these it would be really helpful as I wouldn't have to worry about saving extra and I know that I would manage to pay back every month in instalment without any problem.

What would be the best credit card to get for my case? I would buy the ring online and it would come from USA.

Many thanks for the help.

jackieblack

Firstly I would strongly question the wisdom of buying a ring online from the USA but, if you do, make sure you factor in customs charges and VAT.

To answer the question about credit cards, look here https://www.moneysavingexpert.com/credit-cards/best-0-credit-cards and use the eligibility checker to see how likely you are to be accepted.

Dobbibill

There are few thing to factor in to this.

How thin/bulky is your credit report?
You say you own a property without a mortgage but don't say if it was bought with a mortgage/cash/inherited. Just wondering if you have evidence of paying back credit on your file. What does it show exactly?

You will be looking for the longest 0% spending card you can get - you may be offered less months than advertised if it's an 'up to' deal, so factor that into spreading the repayments. eg if you apply for 24 months but are only able to get 12 months, how will this impact you/your budget in 12 months time.

If you are purchasing from the USA, you want to look at cards that have low/zero non-sterling transaction fees.

If you want S75 cover, make sure there isn't a 3rd party used in the payment chain.

Finally - how much are you planning on spending?
You could get a credit limit of £500 or £10k or anywhere in between, you won't know until you apply. What if the credit limit is not enough - do you have a plan B.

dj1471

I see your logic in buying online and I considered doing the same, but firstly it's not really cheaper once VAT and duty is added, secondly for this type of purchase you really need to see what you're buying in person. That ring that looks perfect in the photos can be really underwhelming in reality. Have a search of the weddings board for tips on buying.

In terms of the card, try some eligibility checkers and see if you might be eligible for a 0% purchase card, otherwise you need to seek out the lowest APR. The major US retailers charge UK customers in GBP so non-sterling transaction costs shouldn't be a factor.

haxor

Dobbibill wrote: »

There are few thing to factor in to this.

How thin/bulky is your credit report?
You say you own a property without a mortgage but don't say if it was bought with a mortgage/cash/inherited. Just wondering if you have evidence of paying back credit on your file. What does it show exactly?

You will be looking for the longest 0% spending card you can get - you may be offered less months than advertised if it's an 'up to' deal, so factor that into spreading the repayments. eg if you apply for 24 months but are only able to get 12 months, how will this impact you/your budget in 12 months time.

If you are purchasing from the USA, you want to look at cards that have low/zero non-sterling transaction fees.

If you want S75 cover, make sure there isn't a 3rd party used in the payment chain.

Finally - how much are you planning on spending?
You could get a credit limit of £500 or £10k or anywhere in between, you won't know until you apply. What if the credit limit is not enough - do you have a plan B.

it was bought with cash outright,last year.

Never defaulted in any bills or been in overdraft,but i never took any loan out so I'm not sure how my credit rating looks.

My budget for the ring was around 4k pounds.

I didn't thought about a plan B yet,but even if I get only 12 months to pay the ring back I wouldn't have any problem in my opinion,my expenses are really small.

haxor

dj1471 wrote: »

I see your logic in buying online and I considered doing the same, but firstly it's not really cheaper once VAT and duty is added, secondly for this type of purchase you really need to see what you're buying in person. That ring that looks perfect in the photos can be really underwhelming in reality. Have a search of the weddings board for tips on buying.

In terms of the card, try some eligibility checkers and see if you might be eligible for a 0% purchase card, otherwise you need to seek out the lowest APR. The major US retailers charge UK customers in GBP so non-sterling transaction costs shouldn't be a factor.

Thanks for your response.

I did some research and the ring she likes in London would cost at least double that the one she would be getting from USA.

thanks for the link,I'll have a look.

Dobbibill

haxor wrote: »

Never defaulted in any bills or been in overdraft,but i never took any loan out so I'm not sure how my credit rating looks.

You can find out here free.

Experian - MSE Credit Club
Equifax - Clearscore
Call Credit - Noddle

Just make sure everything is accurate - you don't want to risk being declined to find out later there's something that shouldn't be there .

haxor

I've just done it it's on an average of 500 to 600

Dobbibill

haxor wrote: »

I've just done it it's on an average of 500 to 600

Take little notice of the score but look at all the data instead.
No-one sees the score except you and the CRAs.

Full name, DOB, address history, dates of moving, accounts opened, closed accounts in the other section, CIFAS section, etc etc.

chattychappy

Dobbibill wrote: »

Take little notice of the score but look at all the data instead.
No-one sees the score except you and the CRAs.

Full name, DOB, address history, dates of moving, accounts opened, closed accounts in the other section, CIFAS section, etc etc.

(emphasis added)

I agree with the gist. Lenders use their own criteria and will combine the results of a search with other information - previous history with the customer, what is written on the application form etc.

Having said the same myself, I realise that the bit in bold is not quite true. I recently subscribed to Experian as potential lender. I did a search on myself and got 992. Lo and behold, a few days later, I get an update via the "free" service on Barclaycard - my latest score is 992. (I suppose it could have been a tad lower given the recent search!)

cjv

A long duration Purchase card is ideal for you, there are several with a duration of 38 months or more.

If they have what you are looking for at a price you are ok with, I highly recommend Purely Diamonds. They are based in London, you can choose all the 4 C's to your own specification/budget and you can also go to their showroom and view your ring before you part with your money if you wish.

I spent about a month doing waaaaay too much research before buying my fiance's ring... but it was worth it.

Take your time, check everything twice or thrice and then check it again to make sure you are happy with your purchase. Good luck:D