One Off Use Credit Cards - Help Needed!

leew

Hi all, just after a bit of advice for my girlfriend.

She is after a credit card to pay for this years holiday and for a little spending money. It won't be used for anything else at all.

I'd imagine it would be payed off asap as she likes being debt free - don't we all!!

I have looked at the credit card guide posted here and was leaning towards a Sainsburys card but thought i'd get everyones opinion as i'm not too sure to be honest.

Any feedback greatly appreciated!

Thanks.

Leew.

funkymonkey

to be honest it all depends on her credit history as to what card to apply for but basically if she wants the card for spending money as well as paying for the holiday the best and cheapest way is to get a 0% card that allows super balance transfers - straight into your current account.

Egg (although 2% fee)
Virgin (no fee)
MBNA Plat. (2% fee)

I would say from personal experience that Egg are good with credit limits and arnt too fussy on who they accept.
obviously if her credit history is good incl. electoral roll etc then go for a virgin card as this has a long 0% - 9 months.

leew

Thanks for the reply funkymonkey, it really seems like a minefield this credit card lark!

I think her credit history is good as far as i know so the Virgin card is probably the best bet as you say.

Anyone else, feel free to chip in!

Ta.

alex28_2

Hi,

Sorry to butt in but i think Egg are too fusy who they choose as i have recently experienced.

Cheers.

YorkshireBoy

OK then, you asked others to "chip in" - here's my slightly different angle on things...

leew wrote:

She is after a credit card to pay for this years holiday and for a little spending money.

Why not forego this years holiday as you don't have the money available for it? You can then save up for the next 12 months and pay cash next year. By the way, if you can't get one of the SBT cards then getting a cash advance (for your "spending money") on a CC is probably the most expensive borrowing there is!

leew wrote:

It won't be used for anything else at all.

The "debt-free wannabe" board is full of posters who started out by saying this. Take a look at some of the stories in there - they're horrifying!

leew wrote:

I'd imagine it would be payed off asap.

ASAP is very subjective. If her salary is large enough, she could probably pay £150/month and clear a £1,400 holiday in around 9 months - IF the card was a Virgin 9 month as has been suggested. If, however, her salary is not so good, and further 0% deals are hard to come by, then the rate will jump to approx 14.9% and she could be paying for this years holiday for a long time.

leew wrote:

...as she likes being debt free - don't we all!!

If she likes to be debt-free why is she considering going INTO debt for a holiday?

leew wrote:

Any feedback greatly appreciated!!!

My feedback is not intended to be provocative, just another angle for her to consider - and its the advice I've given to my eldest son who is 20 years old. Having said all that, the Virgin card is good (I have one) but there is one major downside to the unwary...

With minimum payments of only £5, you will have to be really disciplined to either...

1/ Make more than the minimum payment, or

2/ Ensure you put what you would otherwise have paid monthly into a savings vehicle ready for when the final payment is due.

grumbler

leew wrote:

...She is after a credit card to pay for this years holiday and for a little spending money. It won't be used for anything else at all.

I'd imagine it would be payed off asap as she likes being debt free - don't we all!!

YorkshireBoy wrote:

...The "debt-free wannabe" board is full of posters who started out by saying this. Take a look at some of the stories in there - they're horrifying!..

'How did you get into this debt?' thread, post #2:

...mine started with a loan to florida for a holiday in 1999(was cheap deal so wanted to do rather than save-big mistake) ...never paid it off when back as planned.....carried on using for bits and bobs.....and so on.....just living beyond our means really......i think its too easy to get credit and get into debt.
debt free date under construction!!! but roughly credit and loan debt free in 2008 and totally debt free by 2010.

:eek: