Credit Card for Spending Discussion Area

parc77

i dont know if anyone out there can advise me. In brief I need to finance the purchase of a new car and Virgin have offered a cash transfer at 0% to me as an existing customer - can anyone see a problem with this if i pay it off before the 0% ends? Will borrowing cash (aprox 10K) affect my credit rating?

CannyJock

parc77 wrote: »

i dont know if anyone out there can advise me. In brief I need to finance the purchase of a new car and Virgin have offered a cash transfer at 0% to me as an existing customer - can anyone see a problem with this if i pay it off before the 0% ends? Will borrowing cash (aprox 10K) affect my credit rating?

A Virgin Money Transfer isn't reported as a Cash Advance (which would be seen as a red flag to some lenders), it's reported like any other Balance Transfer or Purchase.

The only affect it will have on your credit rating is having a £10,000 balance on a credit card.

Missing a repayment on the other hand will affect your credit rating so hope you've got a DD in place

chellie2009

hi just wondering why my credit card appication for mbna was unsuccessful when just a few days earlier i was accepted by barclays?is mbna has a high standard credit card provider?you think my credit score will now be affected with the declined?i need explanation please.thanks

smckay

Hi all,

looking to apply for the Sainsbury Credit card and have two questions;

1. 0% for 12 months on Sainsburys purchases and 10months for all other purchases. Will this work like purchases on a BT card where the lowest limit is paid off and you might get stung after 10 months getting charged for "other purchases"?

2. I currently have cards with Virgin and Halifax, any reason why I wouldnt get accepted for the Sainsbury card??

Cheers

Moggles_2

smckay wrote: »

0% for 12 months on Sainsburys purchases and 10months for all other purchases. Will this work like purchases on a BT card where the lowest limit is paid off and you might get stung after 10 months getting charged for "other purchases"?

I'm not familiar with Sainsburys credit card, but I would check the Ts & Cs carefully under order of payments, if you intend to use the card in shops other than Sainsburys. Unless stated otherwise, you can bet that repayments will be allocated to your outstanding balance in a way that benefits Sainsburys, not you :rolleyes:

I currently have cards with Virgin and Halifax. Any reason why I wouldn't get accepted for the Sainsburys card?

Sainsburys, like Halifax, belongs to the HBOS stable. This group doesn't seem to mind customers holding more than one of its cards (as long as you don't apply for two identical ones). That said, you may be handed a lower credit limit to compensate for the credit available on your Halifax card

smckay

thanks Moggles,

no surprises in your response but nice to double check these things!

longhop

Hi there,

Please forgive my ignorance but I've never had a credit card and want to sign up for one with free gifts/cashback.

Im not looking to carry any debt and will pay off every month so that its at £0. The balance tranfer... is that when im paying off the outstanding amount on the credit card?

I think I just 0% on purchases for as long as possible with the best free gift? And then at the end of the 0% purchase just cancel the card and sign up for another?

Is there a limit on how many credit cards I can have?

Sorry I know these must be simple questions.

buda

Hi,

I'm having some building work done on the kitchen that's going to total about £8,0000 and we've got about half of that in savings. The other half I'm hoping to finance on the cheap using a 12-month 0% card.

I'm a little unsure about how best to go about this though. Can you pay a builder with a credit card? If so should I do that on an existing card and then do a balance-transfer to a new deal or try and do it straight on a card that does 0% on purchases?

Any help much appreciated from anyone that's done this kind of thing before.

Thanks!

lr1277

longhop wrote: »

Hi there,

Please forgive my ignorance but I've never had a credit card and want to sign up for one with free gifts/cashback.

Im not looking to carry any debt and will pay off every month so that its at £0. The balance tranfer... is that when im paying off the outstanding amount on the credit card?

I think I just 0% on purchases for as long as possible with the best free gift? And then at the end of the 0% purchase just cancel the card and sign up for another?

Is there a limit on how many credit cards I can have?

Sorry I know these must be simple questions.

Balance transfer is when you have one card with an amount you owe the card company, then get a 2nd different card and put the outstanding debt on the new card. Basicallly your new card pays off your older card.

I am a little confused by your statements that you want to pay the card off in full every month, but are also looking at 0% purchases. If you pay the card off in full every month, there are no worries about 0% purchase rate.
If you are looking to buy something and pay if when the 0% rate comes to an end, then yes you will need a 0% purchase card. Just be sure to remember to pay the minimum balance between buying the item/service and when you pay the balance off in full.

Not sure what you mean by free gift but lots of cards give cashback/rewards based on your monthly spending.

No limit on the number of credit cards, and I am not an expert on this, but I believe everytime you apply for credit (be it a card, loan, current account, mobile phone contract etc), then an entry is added to your credit report. Too many entries and you won't get any more credit till you close some accounts. Like I said I am not an expert so please read more on this site about this situation.

Also some brands of cards are less acceptable to retailers, mainly American Express because they charge the retailer a higher fee than Mastercard or Visa. But on particular Amex card gives the best cashback.

HTH

izools

buda wrote: »

Hi,

I'm having some building work done on the kitchen that's going to total about £8,0000 and we've got about half of that in savings. The other half I'm hoping to finance on the cheap using a 12-month 0% card.

I'm a little unsure about how best to go about this though. Can you pay a builder with a credit card? If so should I do that on an existing card and then do a balance-transfer to a new deal or try and do it straight on a card that does 0% on purchases?

Any help much appreciated from anyone that's done this kind of thing before.

Thanks!

MBNA and Virgin offer 13 and 16 months respectively 0% on funds transferred into your Bank account - so the builder wouldn't need to take cards; you just do a balance transfer to your current account and so on