Part Payment of House with 0% Interest Credit Card.

Marchitiello

BucketFull you keep referring to your previous reply on the 17th of January but in it you did not specify clearly why you “wish” to avoid option that involves paying interests. Many forum users may not be familiar with religious beliefs that forbid the payment of interests, so if you would have made it clearer you would not have been receiving a suggestion in that direction every other answers (and some time you still would get such answers as no everyone will read the full thread history). This is because a mortgage to buy a house is such an established method in the western World (low interest way to borrow large sum of money).

Therefore the only options I can see for you, is either borrow at no interest from family & friends (harder), trying to get a money transfer card and paying within the 0% interest period, or trying to get a sharia approved loan or mortgage from a UK bank that may offered it (there used to be Islamic Bank UK that did that until about 10 years ago, and I know a friend that borrowed something In excess £20k to buy a house abroad...). 

Back to you budget explanation, I would say that most of us do indeed have a budget, but normally would be in excess of the actual money needed as it would be harder to make house offers if the entry level house price in your area are already at your max budget.  Not sure where you are planning to buy, but in London in the last few months I have another friend that was trying to sell and he had to accept an offer lower of almost £10k on his asking price but that is obviously different if you are trying to get £5k of an house costing £50-75k for example somewhere else 

runforlife

If you’re applying for a credit card for the purpose of a cash advance you’ll need to apply for a higher limit than the amount of cash you need. There’s usually a percentage limit of your credit limit on a cash advance. 

BucketFull

Thank you for taking the time to reply, Marchitiello. That is some really good and useful advice. Yes, unfortunately, my budget at this moment is less than the entry level price for the area.

Thanks runforlife. From what I understand, I thought £5,000 would be pushing my luck! I wouldn't have thought they'd give anymore than that. Do they??

[Deleted User]

BucketFull said:

From what I understand, I thought £5,000 would be pushing my luck! I wouldn't have thought they'd give anymore than that. Do they??

They give much, much more than that. But it's based on risk and you may not meet their criteria.

BucketFull

It probably won't matter because £5,000 is around the amount I would be able to pay back during the interest free period, so I won't be applying for any more than that anyway. Thanks zx81.

BucketFull

Hi all.

As it's getting nearer the time when I need to apply for the card, I thought I'd check the latest card offers on MSE and discovered two other options not mentioned before and was wondering if either of them were not suitable for my purposes for any reason or less suitable than the balance transfer card? They are the "0% spending card" and the "0% money transfer card".

Another question I have is, in order to build a good credit rating, is it possible to simply borrow the maximum credit limit and pay the full amount back straight away and do that again a few times? Sorry if this is a stupid question. I don't have a credit card and have never used one before. I have never borrowed any money, thus never been in debt, so my credit history shouldn't have any marks against it, but as advised in this thread, that means that there is a lack of management of money owed.

Thanks for any advice.

[Deleted User]

If you have no credit card, a balance transfer card serves no purpose, as you have nothing to transfer.

If you're looking to build a history, get any card, use it and clear in full each month.

BucketFull

I've just realised my silly question was a silly question! Obviously, anyone can just borrow a million and pay it back 'straight away'. Let me rephrase my question. What would be the minimum period in which the full amount could be paid back and be acceptable and not just silly, for the purpose of increasing the card's credit limit and my credit rating?

Thanks.

[Deleted User]

Anytime as long as it's between getting the statement and before the due date.

BucketFull

Thanks zx81.

I posted my last post before yours came through! Seems like you have answered my question in advance!

So, would the "0% spending card" be my best option for obtaining the £5,000 I need?

Regarding building a credit history, I would assume I'd need to apply for a different card anyway and use that to build it, as the first purchase only situation will apply for when I wish to apply for the amount I need.

Thanks.