Need some MSE credit card advice!

MEM62

labradorlove wrote: »

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

Rethink your budget a little.

According to the above you are borrowing for insurance. Why not just pay monthly instead? With respect to road tax / MOT, these are annual expenses. If you have to borrow money for them now how will you fund them next year? If you really need to borrow to cover on going running expenses then I would suggest that you cannot really afford to run a car. Lastly, emergency repairs. Why borrow money for an event that has not and might even not happen? This makes no sense. Deal with those issue if and when you have a mechanical failure.

labradorlove

What do I go by? Just apply and see what they offer?

[Deleted User]

You go by the data on your file, and perhaps soft search eligibility checkers.

The scores from the CRAs are for entertainment purposes only, rather like horoscopes. They don't actually mean anything, but may cheer you up if you're having a bad day.

YorkshireBoy

With very little on your credit file, a new mortgage, and an electoral roll issue with at least one CRA, I'd forget credit cards and instead approach your bank (the one that receives your income and pays your bills) for a loan instead. Just revise the amount down, ie don't borrow money to put in a savings account in case the car breaks down!

labradorlove

So with a 0% interest for say the 30months, just to confirm, would this mean as long as I'm paying say £300 back every month, I won't have to pay interest on the 5000, apart from the initial 4% to transfer it into my current account. Just wanting to confirm that's how these cards work

YorkshireBoy

labradorlove wrote: »

So with a 0% interest for say the 30months, just to confirm, would this mean as long as I'm paying say £300 back every month, I won't have to pay interest on the 5000, apart from the initial 4% to transfer it into my current account. Just wanting to confirm that's how these cards work

Your understanding is correct.

agrinnall

Why do you need a car at all? The MSE way would be to take the bus and save up until you can afford to pay for a car and insurance in cash - while remembering to leave yourself a savings buffer in case of unexpected expenses (including the hopefully unlikely possibility of losing your job).

Penelopa.Pitstop

MEM62 wrote: »

Rethink your budget a little.

According to the above you are borrowing for insurance. Why not just pay monthly instead?

That wouldn't be very Money Saving idea. Paying in instalments for car insurance usually attracts 20% APR. It's basically very expensive loan. Much better to use 0% card for that or even loan with 3-4%.

The only thing is, if OP needs to borrow for insurance, how is he/she going to save for the next year insurance? Will there be enough money left to pay off card and save for another year's insurance?