Credit Card for Large Purcase.

flexeh

Morning all,

Just looking for some advice from the experts here, as I’m crap in terms of knowing the best CC deals.

I’m looking at spending approx 12-1700 in the next month on parts to build a new pc. To be honest I’ve got the money to purchase it myself, but if I can take advantage of longer interest free and balance transfers and spread it over 3/4 years, it would be appealing, especially as I’d rather the money be in my account at the moment with everything going on in the current climate. Just wondering the best way to go and can people suggest any current cards? I’m assuming get a long 0% on purchases and then balance transfer in the last month to a new card?

appreciate guidance thanks.

[Deleted User]

Your plan is fine, whether you can execute it is the question.

How is your credit history? Are you on the electoral register? Do you have a good history of say buying on a card and paying it off in full every month? What do the basic eligibility checkers on say MSE suggest? Have you checked all 3 credit reports to ensure nothing nasty on there?

No point suggesting cards as it depends on your history. A good credit history and an up to 20 month 0% from M&S, Sainsburys or TSB are there, bad history and Aqua 6 months might be better. After 6-20 months, whether you get a BT card or not will depend on all sorts of factors which can't be predicted e.g. if you still have a job, how you have done since then etc

eskbanker

flexeh said:

Just wondering the best way to go and can people suggest any current cards? I’m assuming get a long 0% on purchases and then balance transfer in the last month to a new card?

As above, it isn't really practical to give specific guidance without more detailed knowledge of your circumstances, but a good place to start would be https://www.moneysavingexpert.com/credit-cards/best-0-credit-cards/, which includes a link to an eligibility checker that should steer you towards which cards you're most likely to be able to get.

Probably not an issue if you have the funds available already but best not to assume that you'd be able to do a balance transfer to a new card at the end of the promo period on the first card - there have been quite a few posters reporting failure to do this recently and finding themselves exposed as a result.

flexeh

Credit history was bad 10 years ago, great credit now, some money in the bank for a rainy day and my job is secure for now. Worst case if I don’t get a BT card I’ll should have the funds to clear the remaining.

I did look at the eligibility checker but most of them said assumed 1200? Or could that be higher? Just need a bit more rather than 2 separate cards 

eskbanker

flexeh said:

Credit history was bad 10 years ago, great credit now, some money in the bank for a rainy day and my job is secure for now. Worst case if I don’t get a BT card I’ll should have the funds to clear the remaining.

I did look at the eligibility checker but most of them said assumed 1200? Or could that be higher? Just need a bit more rather than 2 separate cards 

£1200 is a standard but notional figure used when presenting info about cards but isn't representative of what sort of credit limit any individual might get, which can be much higher or indeed lower....

jonesMUFCforever

This is like buying a second hand car on a long term loan - that is not a great idea.
Build a computer today in 3 or 4 years time it will be obsolete.
By all try to get a purchase promo rate card but try to pay it off before the first card rates expire.

[Deleted User]

jonesMUFCforever said:

This is like buying a second hand car on a long term loan - that is not a great idea.
Build a computer today in 3 or 4 years time it will be obsolete.
By all try to get a purchase promo rate card but try to pay it off before the first card rates expire.

I have a PC built in November 2015, cost £1150 and still works fine to play the games I want to (though I don't play the high end graphics ones). A decent and well planned setup can be upgraded in the future e.g. reuse PSU, case, monitor etc. My PC before my current one cost £920 and lasted 5 years as well, towards the end I upgraded the cooling system and overclocked it from a 2.66ghz to nearly 4ghz and got another couple of years out of it.

Paying on a 0% for a new PC is nothing at all like a loan for a second hand car

jonesMUFCforever

We will have to agree to disagree on that one. A 0% card is fine as I said but you will not get one card with a promo rate for 4/5 years - you will have to switch from card A to card B etc with fees for doing so.

[Deleted User]

What are you on about the 4-5 year transfer?
OP wants to buy the parts on say a 0% purchase card, and transfer to a balance transfer card to pay off for longer. In 3-4 years over 2 card periods, the PC might be obsolete (depends what OP wants it for, a premium games rig sure, a normal gaming PC, maybe not) but then it's all paid off. The 2.4% (example) fee would be £40.80 for a £1700 balance transfer (and he's obviously going to be paying it off so the balance and thus fee would be lower) and it's quite possible to cover the fee if the balance was in a decent savings account e.g. HSBC regular saver at 2.75%, £125 a month, £22.53 interest annually

jonesMUFCforever

Deleted_User said:

What are you on about the 4-5 year transfer?
OP wants to buy the parts on say a 0% purchase card, and transfer to a balance transfer card to pay off for longer. In 3-4 years over 2 card periods, the PC might be obsolete (depends what OP wants it for, a premium games rig sure, a normal gaming PC, maybe not) but then it's all paid off. The 2.4% (example) fee would be £40.80 for a £1700 balance transfer (and he's obviously going to be paying it off so the balance and thus fee would be lower) and it's quite possible to cover the fee if the balance was in a decent savings account e.g. HSBC regular saver at 2.75%, £125 a month, £22.53 interest annually

Sorry I meant 3/4 years.
If you can get a BT fee for 2.4% then go for it most of the deals I am being offered is 3.5% for 12 months or 4% for money transfers.

born_again

We  take it that you have no other CC's at the moment.
If you can get a 0% purchase card then great go for it. If you get a 3 year deal then even your top limit is sub £50 a month. If you can't afford that, then think again.
But do not bank on getting a balance transfer card later on to move the balance over to, so you can extend the payback period.

We are seeing more posts now thanks to 2020 being a !!!!!! to a lot of people. They have been doing just that, moving balances each time the current offer ends. 
Stoozing was great when saving interest rates were high. Now getting above 1.0% is a great rate.... It is just not worth the returns.
The chickens have now come home to roost as too many people, these offers have dried up. So they now have to pay back the loan with interest....

So make sure you budget to pay the debt back in the 0% period you are offered.