Should I take out credit card or loan?

Locogooner

So I'm a filmmaker and I'm beginning the process of making a short film.

I have already engaged in the services of a casting director to which I must pay £3000 by next week. That's a different story entirely but I currently can't pay that from my personal account so I was going to take either a loan or credit card.

I was going to do this anyway for early funds to get the film going.

These early funds of £5000 would covered by the eventual fundraising we'd do via private investors / crowdfunding.

My credit score is 851 with a few minor issues that equate to negatives (not on electoral roll at current address and applied for loans 3 times in last 6 months).

I'm very sceptical of a lot of the available loans (Amigo being one of the few) as £5000 of 60 months would equate to a whopping £12K being paid back at the end of the term. HELL NOPE!

Business loan is probably not on the cards as my small business (film production company) technically hasn't traded yet and our business plan would essentially have to be embellished.

What is recommended?

[Deleted User]

Ignoring your credit score for a start.

What are the issues on your files?

What is your income? Do you actually have one?

Locogooner

Deleted_User wrote: »

Ignoring your credit score for a start.

What are the issues on your files?

What is your income? Do you actually have one?

3 negatives were
- not on electoral roll
- 3 applications in last 6 months
- You have no settled non-mail order credit accounts.

I'm a freelance contractor but my income for the last year was £23K or so. After tax

[Deleted User]

Being on the ER is the significant one. Many mainstream lenders will reject based on that alone.

The 'no settled non mail order accounts' can be ignored.

Do your other files show similar data? What other credit history do you have? Have you demonstrated you can handle credit via credit card, for example? A thin file can be as bad as a poor one.

Your freelance status may also put some lenders off.

YorkshireBoy

I wouldn't call 3 loan applications in the last 6 months and not being on the Electoral Roll "minor" issues...and I suspect lenders would agree.

I think you'll have to wait until you're on the ER (late Dec/early Jan if you've already submitted your info...have you?), and the effects of 3 loan applications in quick succession have diminished, before applying again.

Locogooner

Deleted_User wrote: »

Being on the ER is the significant one. Many mainstream lenders will reject based on that alone.

The 'no settled non mail order accounts' can be ignored.

Do your other files show similar data? What other credit history do you have? Have you demonstrated you can handle credit via credit card, for example? A thin file can be as bad as a poor one.

Your freelance status may also put some lenders off.

Yeah other issue is, I don't really have credit history as I've never had a credit card. My other files were similar but none were as comprehensive as the experian one.

Is there any other way around this for the time being? Because I most likely will owe £3000 come Monday. It did say I have a good chance of being accepted for a 0% balance transfer card.

Maybe business loan or would that not make a difference?

Locogooner

YorkshireBoy wrote: »

I wouldn't call 3 loan applications in the last 6 months and not being on the Electoral Roll "minor" issues...and I suspect lenders would agree.

I think you'll have to wait until you're on the ER (late Dec/early Jan if you've already submitted your info...have you?), and the effects of 3 loan applications in quick succession have diminished, before applying again.

Ah I see.

Yeah I've submitted my info already.

Dobbibill

You may have to look at another way to fund this.

A BT card will be no good - this is for moving a balance from one card to another.

Does the firm accept credit card payments? If so, a purchase card may fit.

If not, it's a money transfer card that you need.

With several applications in the last few months and not being on the ER coupled with the limit you would need, I fear you will struggle to get what your looking for in a credit card.

All the best with your business venture though.

Locogooner

Dobbibill wrote: »

You may have to look at another way to fund this.

A BT card will be no good - this is for moving a balance from one card to another.

Does the firm accept credit card payments? If so, a purchase card may fit.

If not, it's a money transfer card that you need.

With several applications in the last few months and not being on the ER coupled with the limit you would need, I fear you will struggle to get what your looking for in a credit card.

All the best with your business venture though.

By firm, you mean the company I owe the money to ? and What is a purchase card ?

I’m not too sure if they accept credit cards.

Candyapple

Locogooner wrote: »

By firm, you mean the company I owe the money to ? and What is a purchase card ?

I’m not too sure if they accept credit cards.

Yes, firm = the company you owe money to.

More info about purchase cards here:
https://www.moneysavingexpert.com/credit-cards/best-0-credit-cards

So basically if the company you owe money to accepted credit cards as payment, if you applied for a 0% purchases card, you could pay them using that card and have x-amount of months at 0% to pay it back.

What it sounds like you need is a money transfer card. Enter your details below, what do the results show?

https://creditcards.moneysavingexpert.com/?money-transfers&_ga=2.35089384.834200754.1510575016-1185111832.1510310384

Locogooner

Candyapple wrote: »

Yes, firm = the company you owe money to.

More info about purchase cards here:
https://www.moneysavingexpert.com/credit-cards/best-0-credit-cards

So basically if the company you owe money to accepted credit cards as payment, if you applied for a 0% purchases card, you could pay them using that card and have x-amount of months at 0% to pay it back.

What it sounds like you need is a money transfer card. Enter your details below, what do the results show?

https://creditcards.moneysavingexpert.com/?money-transfers&_ga=2.35089384.834200754.1510575016-1185111832.1510310384

I was eligible for a Tesco MasterCard at a 40 % chance.