Credit Card Vs Loan

chardonnaydeluxe

Hi. I am buying a new kitchen from Wren Kitchens. I can't afford the deposit required for the lowest repayment option of their interest free credit so will have to go down the credit applying route of 3.4%.

I am wondering if I can pay for the kitchen on an interest free credit card and then do a balance transfer to a different credit card when the interest free period expires? Can I do this and can I make multiple balance transfers to different card providers until I have paid the kitchen off. Or do I go with the 3.4% Wren interest? Jo - Confused of Bristol! 😊

eschaton

It’s a big risk going down the CC route. No certainty of offers and fees might not he much less than 3.4%. Take the finance. 

grumpy_codger

chardonnaydeluxe said:

...Can I do this and can I make multiple balance transfers to different card providers until I have paid the kitchen off. 

How long are you going to pay for this super expensive kitchen?!  Can you really afford it?
Get a 0% purchases card and use it to pay the deposit. Some cards offer 0% for about 2 years. Pay this card off during 2 years.
You are unlikely to get a limit big enough to pay for the whole kitchen and even less likely to get a new card(s) later with a limit big enough to transfer the balance.

MyRealNameToo

chardonnaydeluxe said:

Hi. I am buying a new kitchen from Wren Kitchens. I can't afford the deposit required for the lowest repayment option of their interest free credit so will have to go down the credit applying route of 3.4%.

I am wondering if I can pay for the kitchen on an interest free credit card and then do a balance transfer to a different credit card when the interest free period expires? Can I do this and can I make multiple balance transfers to different card providers until I have paid the kitchen off. Or do I go with the 3.4% Wren interest? Jo - Confused of Bristol! 😊

What happens if you can't find a 0% BT card in a years time or whenever your 0% deal expires? What interest rate would it go onto after? What would your plan be?

There is an appeal of just paying a BT fee periodically but it's a risky strategy unless you have very strong financial position and even then there is still risk. A low finance rate however will presumably be fixed so whilst not as good as 0% its a safer option. 

Ultimately comes down to risk appetite. 

Mark_d

chardonnaydeluxe said:

Hi. I am buying a new kitchen from Wren Kitchens. I can't afford the deposit required for the lowest repayment option of their interest free credit so will have to go down the credit applying route of 3.4%.

I am wondering if I can pay for the kitchen on an interest free credit card and then do a balance transfer to a different credit card when the interest free period expires? Can I do this and can I make multiple balance transfers to different card providers until I have paid the kitchen off. Or do I go with the 3.4% Wren interest? Jo - Confused of Bristol! 😊

Yes you idea of using credit cards could work...but any small mistake and you'd be worse off than paying the 3.4% interest.
I generally don't spend the money unless I already have the cash sitting n my current account...but if I did need to borrow, then I'd go for the simple solution - taking the 3.4% loan.  That's cheaper than my mortgage interest rate, so it's still cheap borrowing.

born_again

chardonnaydeluxe said:

Hi. I am buying a new kitchen from Wren Kitchens. I can't afford the deposit required for the lowest repayment option of their interest free credit so will have to go down the credit applying route of 3.4%.

I am wondering if I can pay for the kitchen on an interest free credit card and then do a balance transfer to a different credit card when the interest free period expires? Can I do this and can I make multiple balance transfers to different card providers until I have paid the kitchen off. Or do I go with the 3.4% Wren interest? Jo - Confused of Bristol! 😊

So how much is the kitchen?

As odds on getting a limit to match that price? Then remember that a balance transfer card will take into effect that you have avaiable credit on the old card.

I would suggest going to a local kitchen supplier who will be a lot cheaper.

th081

Fees will be close to 3.4% ? If they are even 2% then likely not worth it but you can crunch the numbers

grumpy_codger

th081 said:

Fees will be close to 3.4% ? If they are even 2% then likely not worth it but you can crunch the numbers

3.4% is p.a.

3.4% for 34 months means about 1.2% p.a.