Credit card instead of a loan - is it advisable?

A_Lee

A bit of advice please:

We think the car's going to fail MOT and my husband needs one for work. Neither of us have good credit ratings and, after speaking to my bank this morning, it doesn't look like we'll be able to borrow anything from anywhere.
The only advice was to apply for a credit card - subject to acceptance.

Would you advise this?

(Have also posted on 'loans' and 'DFW' forums regarding this subject.)
Many thanks

Alison

Bokkens

Not yet.
Have your car MOT'd at the local council depot.They reconmend what needs to be done but do not carry out the work so if you need work doing you can have it done cheaply somewhere else.
If your bank won't lend you the money then it will probably be the same situation with a credit card.
Visit your citizens advice bureau for some practical help as they may be able to talk to your bank for you and explain why you need the money.
Good luck

CannyJock

Sometimes you're better to approach another bank.

Helped someone who was convinced they couldn't get any low-rate credit to clear their other higher-rate credit. They went to the bank where they had their mortgage (high-rate) and an unsecured loan (high-rate) and they applied for a credit card (low-rate) and got refused.

When I looked at it, I told him that there wasn't enough equity in his house to justify a secured loan on top of his mortgage and he was already up to the £25K unsecured loan limit with that provider. Told him to try elsewhere.

He applied for a Virgin card and got a £ 10K credit limit that he's now used to clear other crazy-high-rate borrowing.

A_Lee

Thanks for the advice. I do have a default on my score though, that I have been told rules out my chance of getting anything with a reasonable rate.

Thanks

Alison

jonesMUFCforever

Sometimes for small amounts a loan will work out dearer.
However if you have an Egg money card or similiar you may get a rate of 7.9% which is competitive and is flexible.