Need some MSE credit card advice!

labradorlove

So the situation is, I need £5,000 for a car

My current savings are £350 and with me only being able to put £300 a month away, I'm going to be waiting a while to hit my £5,000 target

I'm looking for the best way for me to lend this money that doesn't involve hugeee interest rates and without big penalties for early repayment charges.

I've got OK credit, I'm 21. But I've had a mortgage of £121500 for 9 months now, I've opened 2 small retail credit cards when I was 17-19 one with a limit of 150 and one 450 but paid them off and closed them both. Never missed a payment for anything in my life. Apart from the mortgage, I have a phone contract too.

Because I'm not that knowledgeable with how credit cards work I thought I'd come on here for any advice, I know the most sensible would be to wait and save but I'm impatient and I could be waiting 1-2 years. Also to go further with my career I need to be able to get from A to B.

At the moment I'm thinking the best option would be a 0% 27 month Virgin Money credit card. I just want to know how it works, like if I was accepted for the amount I want would I be able to transfer the £5000 into my current account then pay it off in those 27 months completely interest free without any early repayment charges?

Details of the offer I saw on Money Super market

"Purchases
0% 27 months
then 18.9%
Rewards
Travel
Entertainment
Wine
Cashback
Balance transfer
0% 27 months
then 20.9%
2.9% fee
Representative APR
18.9% APR
variable
Chance of approval
10/10

Great for
If you're accepted, you'll get the interest rate and promotional periods shown here
You can transfer money to your current account and pay no interest for 27 months (you'll have to pay a 4.00% fee)
Earn cashback when you shop online with over 500 top brands with Virgin Money Back and enjoy exclusive offers and rewards with the Virgin Red app
But be aware that
You must transfer a balance within the first 60 days to get the promotional offer
You can't transfer a balance from another card issued by Virgin Money"

Any advice on the best course of action would be very much appreciated! Or any other routes of borrowing 5,000 that I haven't thought of also

Thanks in advance :j

martinthebandit

Why do you need 5k for a car?

If your saving £300 a month why not investigate bangernomics?

labradorlove

with the 5000 I've factored in expensive insurance for first time driver, an actual car and money aside for road tax/mot/emergency repairs.

I've never heard of bangernomics but will look into it now thanks

PeacefulWaters

I'm looking for the best way for me to lend this money

You're looking for the best way to borrow.

At the moment I'm thinking the best option would be a 0% 27 month Virgin Money credit card

Will the car dealer accept this? If so, you save 4% fee.

Will you get the required limit?

labradorlove

I'm not sure I was under the impression I'd be able to just transfer from the 0% card into my current account, and then have the choice to go from there, does it not work like that?

What is the 4% fee?

eskbanker

The 4% is the fee for withdrawing the cash from the card to your account.

Worth checking what your credit file looks like (presumably fairly thin) and then also the eligibility checker:

https://www.moneysavingexpert.com/loans/check-free-credit-report
https://www.moneysavingexpert.com/eligibility/credit-cards/

Note that no card company will be able to indicate how much of a credit limit they'll offer you until after you apply, so don't assume that you'd get £5K....

YorkshireBoy

labradorlove wrote: »

I'm not sure I was under the impression I'd be able to just transfer from the 0% card into my current account, and then have the choice to go from there, does it not work like that?

The card also has 0% on purchases for 27 months. If you're buying from a dealer, rather than privately, they may charge a lower fee. Then again, and more likely, they won't take a £2.5K payment by card at all.

But you can repay £300 a month, so there are cheaper, shorter duration, money transfer cards available. Since you only need 16-17 months why not go for one of those?

labradorlove

I paid for an Equifax credit report and score and it came back with 388 'OK' saying the UK average is 380, I put in all my details on Money supermarket and ticked the box for what i'd most likely be accepted for, it gave me 10/10 preapproved but like you say, it's not guaranteed I'd be offered the full amount and for the same amount of months advertised at 0%.

Just did the eligibility checker, one card was 100% preapproved, aqua, the next 2 (mbna and nuba) were 95% chance of approval, then sainsburies at 70% chance

[Deleted User]

labradorlove wrote: »

I paid for an Equifax credit report and score and it came back with 388 'OK' saying the UK average is 380,

Don't pay for fake scores.

Either get your credit reports free via MSE, Clearscore or Noddle, or ask us to give you a fake score here.

labradorlove

My noddle credit score is 586 3/5 but my clearscore one they haven't updated my new address and it's been 9months I've emailed them about it as I'm on the electoral roll here but they still haven't changed it or got back to me so I don't go by that one.

[Deleted User]

labradorlove wrote: »

so I don't go by that one.

Don't go by the others either.