Loan vs Credit Card vs OD vs Other ?

dont_use_vistaprint

Im looking for 2 types of different credit and want people opinions on the best options please

#1 £25-£40K over 12-24 months. I dont know the exact amount yet and whether I'Il pay in back in a year or a little longer. Barclays will loan up to £50K at 5.9%, other banks seem to stop at £25K. Barclays charge 30 days interest as a penalty if paying back early, other interest is calculated daily. Are there any products that have less penalty and better rates of interest on these amounts

#2 Monthly spending so that entire salary can stay in current account on statement for 3 months. I need around £1500 a month for 3 months so around £4500 in total and then will pay it back in the same manner, £1500 per month for 3 months. Its been years since I looked into credit cards other than for rewards/points, I have AMEX limit of 25,000 and pay in full every month but interest rate is very high so I wouldnt want to use it and not pay in full. I have various accounts with overdraft facility but only free up to 700 and then  I think the rates are not far off AMEX. An option Im considering is 1 or even 3 staggered small personal loans but could this activity combined with above harm my credit score.

Currently have 999 credit score and earn around 130K pa. Reason for finance is all my savings and entire salary for 3-4 months and a personal loan is being used to cash buy a property.

[Deleted User]

dont_use_vistaprint said:

Im looking for 2 types of different credit and want people opinions on the best options please

#1 £25-£40K over 12-24 months. I dont know the exact amount yet and whether I'Il pay in back in a year or a little longer. Barclays will loan up to £50K at 5.9%, other banks seem to stop at £25K. Barclays charge 30 days interest as a penalty if paying back early, other interest is calculated daily. Are there any products that have less penalty and better rates of interest on these amounts

#2 Monthly spending so that entire salary can stay in current account on statement for 3 months. I need around £1500 a month for 3 months so around £4500 in total and then will pay it back in the same manner, £1500 per month for 3 months. Its been years since I looked into credit cards other than for rewards/points, I have AMEX limit of 25,000 and pay in full every month but interest rate is very high so I wouldnt want to use it and not pay in full. I have various accounts with overdraft facility but only free up to 700 and then  I think the rates are not far off AMEX. An option Im considering is 1 or even 3 staggered small personal loans but could this activity combined with above harm my credit score.

Currently have 999 credit score and earn around 130K pa. Reason for finance is all my savings and entire salary for 3-4 months and a personal loan is being used to cash buy a property.

A mortgage would be less expensive especially if you can get one without any early repayment charges. Many personal loans such as those offered by Barclays are not meant to be used for buying property so you’d need to fib on the application.  If you decide to go down the cc route then apply for one with 0% on purchase for X months. Overdraft is likely the most expensive way of borrowing the money. 

[Deleted User]

Salary is a factor in lending, but credit score isn't. Lenders will be looking at affordability and indebtedness, which is where you may struggle.

The best route depends on what you can get and what you're spending it on. 0% credit card would be cheapest but limited funds. Not everyone accepts credit cards.

Loans are more expensive and have settlement fees, as you've found. Most are 60 days.

ODs are out of the question. They can be recalled at any time.

.

Sncjw

So you already have a personal loan out all ready and want another for up to 40k..

Good luck with that. I would have got a mortgage it would have been cheaper rate likely. 

Sncjw

How are you going to service said loan if all your salary and a previous loan is used. If your getting an additional loan if lucky you will be servicing two loans.

getmore4less

A purchase CC would cover No.2 as would just borrowing more.

Cheapest when there is property is nearly always a mortgage.
What % of the property will the £50k be.

With high cash flow offset can be a good option.

Take it long term as another cash flow tool

The_Real_Cheddar_Bob

I'm with the buy with a mortgage crowd. 

dont_use_vistaprint

Thanks all
Unfortunately mortgage not an option right now for me , if you want to get the property you want at the right price it has to be a cash offer. Mortgage / Valuation adds 6-8 weeks right now to being able to validate an offer (DIP, AIP isnt acceptable in most cases) and conveyancing already severly backlogged. Most good properties get multiple cash offers above asking price and go off the market very quickly so sellers dont need to bother with offers based on mortgages.

DCFC79

dont_use_vistaprint said:

Thanks all
Unfortunately mortgage not an option right now for me , if you want to get the property you want at the right price it has to be a cash offer. Mortgage / Valuation adds 6-8 weeks right now to being able to validate an offer (DIP, AIP isnt acceptable in most cases) and conveyancing already severly backlogged. Most good properties get multiple cash offers above asking price and go off the market very quickly so sellers dont need to bother with offers based on mortgages.

You run the risk of the finance being pulled if the lender find out if its being used for buying a property.