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PCP vs Credit Card - Credit Rating Impact
MatthewH1982
Posts: 4 Newbie
Morning all;
I am planning on purchasing my vehicle out of its PCP arrangement (8.9% APR) by using a Cash Advance credit card (0% 38 months / 2.99% handling fee). The premise being I will nearly half my monthly payments by way of reduced interest charges
From a credit rating perspective, are there any negatives by moving my 'borrowing' from a PCP to a Credit Card? Is credit card debt viewed more negatively than a PCP commitment for example?
Thank you :T
I am planning on purchasing my vehicle out of its PCP arrangement (8.9% APR) by using a Cash Advance credit card (0% 38 months / 2.99% handling fee). The premise being I will nearly half my monthly payments by way of reduced interest charges
From a credit rating perspective, are there any negatives by moving my 'borrowing' from a PCP to a Credit Card? Is credit card debt viewed more negatively than a PCP commitment for example?
Thank you :T
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Comments
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No. .0
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No, since you have no credit rating or score to be affected0
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MatthewH1982 wrote: »Hi Gary, could you expand on your answer a little for me please?
The score offered by the agencies is meaningless, they rate you whatever they feel like and no lender ever sees that number, the rating goes up and down depending on whatever the agencies think. How your credit record looks is all that matters, you will go from having a PCP loan to having a special offer credit card debt, much of a muchnessSam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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MatthewH1982 wrote: »Hi Gary, could you expand on your answer a little for me please?
Ther ratings and numbers are made up and bear no resemblance to your credit worthiness.
Lender use their own internal rating and scoring systems based on your credit history, not the ones generated by the CRA's0 -
Thank you
Accepting they will have different criteria, would anyone know whether principally a debt by way of PCP is viewed more 'favorably' (or more credit worthy) than debt by way of a credit card?
I'm thinking that a credit card is largely unsecured debt whereas PCP is secured against the asset itself so may be lower risk.0 -
No difference for most lenders.0
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