Self employed and can't get credit for a kitchen

FlaatusGoat

Just had a credit application refused by Barclays at a popular home improvement retailer for a new kitchen. I tried to borrow 7k interest free for 12 months. What am I meant to do? I already have a credit card with 8k and no balance. I earn 50k a year (12k Pay and rest dividends) ugh. 

Brie

apply for a different credit card with a zero % purchase offer.  Or check if there's a 0% balance transfer off on the card you have currently.  

MorningcoffeeIV

You could save, apply elsewhere, consider different forns of financing, or make do with your current kitchen.

sourcrates

Not being funny, but if your on 50k a year, can you not just save up surely ?

I find it strange why those on such high incomes have the need to borrow money at all, and the obvious question is do you actually need a 7k kitchen ?
I have noticed over the years those on higher incomes tend to have higher rates of borrowing by percentage of disposable income, than say someone on a lesser wage, I guess more income promotes more spending.

If it were me, and I was desperate to improve my kitchen, then I would suggest you save up for it, instead of leaving your future build to the whim of some bank.

[Deleted User]

sourcrates said:

Not being funny, but if your on 50k a year, can you not just save up surely ?

I find it strange why those on such high incomes have the need to borrow money at all, and the obvious question is do you actually need a 7k kitchen ?
I have noticed over the years those on higher incomes tend to have higher rates of borrowing by percentage of disposable income, than say someone on a lesser wage, I guess more income promotes more spending.

If it were me, and I was desperate to improve my kitchen, then I would suggest you save up for it, instead of leaving your future build to the whim of some bank.

Often the case !
Having got into financial difficulty myself, 20 years ago, i learnt the hard way.
I learned, from my younger self that discipline comes before all else !

DullGreyGuy

You arent self employed, you are an employee of your company given you state you get dividends.

For Mortgages they treat Director/ Material Shareholders in a very similar way to the self employed but its not what you are 

Ryan_Holden

FlaatusGoat said:

Just had a credit application refused by Barclays at a popular home improvement retailer for a new kitchen. I tried to borrow 7k interest free for 12 months. What am I meant to do? I already have a credit card with 8k and no balance. I earn 50k a year (12k Pay and rest dividends) ugh. 

Are you sure you are self employed, because if you're PAYE £12k then that will have had an affect on your application surely.

Ryan_Holden

sourcrates said:

Not being funny, but if your on 50k a year, can you not just save up surely ?

I find it strange why those on such high incomes have the need to borrow money at all, 

It might be that the OP can save up or has savings, but doesn't want to take a lump sum out of the rainy day fund and would rather pay a little to borrow it.

In a similar vein, I have a classic car that I'm about to start restoring and I have good savings, but I am still considering a loan so that I don't have to have a big hole in my savings. I'd rather pay the £300-£400 interest for the convenience.

FlaatusGoat

Yes, I can afford to pay it off all now but that would be silly? I'd rather accrue the interest on that 7-8k from the Chip 3.55% savings account, and then pay it off in full at the end of the term OR do a balance transfer for even longer. Finance 101

Ryan_Holden

Well it's only Finance 101 if it works, you might get a loan at 12% or something.

MattMattMattUK

sourcrates said:

Not being funny, but if your on 50k a year, can you not just save up surely ?

I find it strange why those on such high incomes have the need to borrow money at all, and the obvious question is do you actually need a 7k kitchen ?
I have noticed over the years those on higher incomes tend to have higher rates of borrowing by percentage of disposable income, than say someone on a lesser wage, I guess more income promotes more spending.

If it were me, and I was desperate to improve my kitchen, then I would suggest you save up for it, instead of leaving your future build to the whim of some bank.

In one of my businesses one of my business partners is someone who I have over time discovered is awful with money, he has always spent 110% of what he has earned, relying on large gifts from parents or re-mortgaging to release equity from house price inflation to pay off credit card, loan and overdraft debt periodically. He seems to work on the basis that "Next year I will earn more, so I can pay it off then", however when next year comes around and his net income has gone up £10k not only does not not balance the books, but he will increase his spending by an additional £ 11-12k. Increases in income always result in proportionately larger increases to expenditure, some people are just bad with money regardless of how much they earn.