Need £4500 for a car

Xander1989

Hi,

I need to borrow £4500 to get a new car, MSE directed me to credit cards as a better way to borrow money under £5000 but there is no credit card that can guarantee such a high amount before applying for it and I don't want to damage my near perfect credit score with applications especially to multiple lenders either trying to find one or to get multiple cards.

Should I just bite the bullet and get a loan or is it worth the hassle and dent in my score to get multiple cards if the first doesn't give me enough credit?

Thanks

molerat

If going for cards you will most likely need money transfer cards as very few car dealers will accept credit card for payments other than a smallish deposit.

Mark_d

You don't want to be making multiple attempts to get a credit card because each time you try, the odds are more stacked against you as a result of the hard search against your credit file.

Do you need £4500 for a new car?  Is this buying a used car from a dealer, putting a deposit down on a new car?
How long will it take you to be able to repay any borrowing that get's you £4500?

DullGreyGuy

You should check what payment methods your dealership accepts... some dont take cards at all, many have a relatively low cap on what they'll take by credit card as fees are a percentage of the transaction and they can no longer charge them on to you directly.

Swoosh84

Xander1989 said:

Hi,

I need to borrow £4500 to get a new car, MSE directed me to credit cards as a better way to borrow money under £5000 but there is no credit card that can guarantee such a high amount before applying for it and I don't want to damage my near perfect credit score with applications especially to multiple lenders either trying to find one or to get multiple cards.

Should I just bite the bullet and get a loan or is it worth the hassle and dent in my score to get multiple cards if the first doesn't give me enough credit?

Thanks

MBNA allow you to do a soft search which will give you an estimated credit limit. You can try this without impacting your credit rating, this should give you a rought estimate of what you will receive elsewhere although it is not gauranteed that other providers will offer you the same.

Newbie_John

Why do you care so much about impacting "score"? It's just really designed for credit cards and loans.. so if not now, what's the point of it? Mortgage companies don't care..

Anyway, how you're planning to pay for this car? Is it from dealer? Do they even accept credit cards? You're planning to do stoozing etc? It takes time..

Also a bit missed question, but can you afford it? How long will it take you to pay it back? Or to save for the car?

Xander1989

Also a bit missed question, but can you afford it? How long will it take you to pay it back? Or to save for the car?

I know I can afford the monthly costs, the problem is I need it asap as my car is giving up the ghost and if I manage to fob it off onto someone on facebook I'll only get about 1500 for it. if I were to save the amount I'd be paying per month to get it it would take 3 years to save up

Xander1989

molerat said:

If going for cards you will most likely need money transfer cards as very few car dealers will accept credit card for payments other than a smallish deposit.

That's good to know thanks

Xander1989

Mark_d said:

Do you need £4500 for a new car?  Is this buying a used car from a dealer, putting a deposit down on a new car?
How long will it take you to be able to repay any borrowing that get's you £4500?

its not a new car it is a used one from a dealer and I would own it outright it is not for a deposit. depending on the interest I'd be looking at 3 to 4 years so basically I would be getting another credit transfer card as soon as the first one is up

born_again

Newbie_John said:

Why do you care so much about impacting "score"? It's just really designed for credit cards and loans.. so if not now, what's the point of it? Mortgage companies don't care..

No lender cares about your score. They never see it. It's a marketing ply by the CRA. That means nothing to lenders.
Credit history is what counts to lenders.

CliveOfIndia

Xander1989 said:

its not a new car it is a used one from a dealer and I would own it outright it is not for a deposit. depending on the interest I'd be looking at 3 to 4 years so basically I would be getting another credit transfer card as soon as the first one is up

Your biggest problem is likely to be - as others have stated - it's extremely unlikely that any dealer will accept the full payment by credit card.  In the olden days they would pass the fees they get charged on to you.  Now they're no longer allowed to do that, so they'll simply refuse to accept a card payment for anything more than a small deposit (commonly up to £500 maximum).

The other thing to bear in mind is that if you're planning on carrying a balance on the card for any length of time, you could well be looking at a fair amount of interest overall - unless you're able to secure a 0% or low APR deal (this assumes that you're either able to pay by card or else make use of a Money Transfer card).