Credit Card Borrowing prior to inheritance settlement

timg147

Hi All
Just looking for some thoughts. I am shortly (not fully sure how long) to get a reasonably large inheritance. We lost both parents last year. My mums probate was granted about 3 weeks ago, my fathers probate application went in 3 or 4 weeks afterwards - so logically his grant of probate is not far off. I'm not sure how long it will take to gather the funds together from the banks etc and whether we will get a partial payment prior to the sale of their property.

One thing I want to do with my inheritance is to buy a musical instrument for a group I am in - approx. value almost £7k. This is quite specialized, I have made enquiries with a distributor and can have it made and delivered by November, a similar instrument from another manufacturer we are looking at April next year.

I don't have the funds currently. I have a Barclaycard with sufficient credit on it. I can purchase directly on the card, I also have a funds transfer option available to transfer the money to my current account. The funds transfer option has a good length 0% interest available on it.

My question is which option is going to be best? Is there anything I am missing or alternative options? Would I still get the section 75 cover If I used the funds transfer. Are there any other obvious borrowing options?

MorningcoffeeIV

You don't get s75 on a money transfer. 

If you have a decent credit history and really can't wait, then get a 0% purchases card.  Remember you need to at least make minimum payments.

Brie

If you buy something on a credit card, particularly one of that value, you should get the section 75 cover if things go radically wrong.  Just ensure that you are buying directly from whomever is supplying the instrument - whether that's a retailer or an specialist instrument maker.  Not through some intermediary like PayPal.  

How you pay of your card is immaterial.  They will still be subject to section 75 if you owe money, pay it all off with pennies from your piggy bank, or do a number of balance transfers.  As I understand it it will also apply to the full amount for the instrument as long as you pay at least £100 on your card - the rest you could pay cash if you had it available (which I know you say you don't)

I am wondering (because I'm nosey) what type of instrument it is.  

BTW - a bit late but sorry for your loss.  Both parents in one year is a bit much.

lr1277

I say the following as you don’t mention what is in your parents’ estates. If there is a house that needs selling, then any monies might be months away. A probate house sale can take 4 months plus depending on if the sellers agree to the offer and then the buyer doesn’t experience any difficulties.
If you buy something now on a credit card, it will have to be paid off before the end of November. Will you have your inheritance by then? Best ask the executor on their best estimate of when you will receive your inheritance.
Unless you get a purchase card as suggested by @MorningcoffeeIV. If you do, ensure the interest free period covers a time period that includes any complications in getting your inheritance, say 1-2 years, as a complete guess.

timg147

I don't know when I will actually get my inheritance hence thinking about using the credit card short term. There is quite a chunk on money in bank accounts, premium bonds etc. The house has only just gone on the market. I don't know if the legal guy dealing with the estate for us is going to do a part settlement pending the house sale.

I had thought of the 0% purchase card route. What's the chance of getting anywhere near the credit limit I need? I do have a good credit history.

Brie

timg147 said:

II had thought of the 0% purchase card route. What's the chance of getting anywhere near the credit limit I need? I do have a good credit history.

How long is a piece of string?  It will depend on a number of things not least of which is that you say you already have a Barclaycard with a substantial limit on it already.  You will need to show you have both the credit history and the ability to pay off both the Barclaycard and whatever other card you get as well as any others you already have.  It won't matter that you have zero balance on any of them right now - the banks have no way of knowing you are going to rock off and book a cruise around the world at the same time you purchase your Strad guitar or uke.

theoretica

Who is the executor?  Tell them you would appreciate an interim payment of at least 7k and ask if it is likely to be possible and by when so you know for your planning.

Grumpy_chap

Sorry to hear about your double-loss.
You have waited all your life, plus this year since your parents passed, before getting this instrument.  It may be prudent to wait a few more months until the inheritance is fully resolved and the final sums landed as clear funds in your account.
If you cannot wait, you should only buy on credit if you are able to fully repay without the inheritance funds.  There could be any number of reasons why the inheritance funds may yet be delayed further or not materialise to the value you anticipate.

55ryan

There is a phrase I use in the financial help I give to people, 'until it's there, never spend on a promise'.

It doesn't matter if it is a salary, pension, money owed or an inheritance. Never spend out on something before you physically have the funds. Sometimes in life things can go sideways be it delays or other reasons.

Sorry for your loss and good luck with the new instrument once you have the monies.   

born_again

timg147 said:

I don't know when I will actually get my inheritance hence thinking about using the credit card short term. There is quite a chunk on money in bank accounts, premium bonds etc. The house has only just gone on the market. I don't know if the legal guy dealing with the estate for us is going to do a part settlement pending the house sale.

I had thought of the 0% purchase card route. What's the chance of getting anywhere near the credit limit I need? I do have a good credit history.

They should if there are funds available in bank account.
Did it with my mothers estate as daughter bought a new car & she got a advance of her share to cover this.

chanz4

Normally they will keep back until, their fees will be taken first. Probate can take about 6 months , house sale at least 2 months if no chain