Finance and credit ratings

EmeraldAceBurlesque

Hi everyone, I'm new to this forum so sorry if i haven't posted this in the correct place. I don't know a lot about money matters so i wonder if anyone out there could advise.

I have my heart set on a tiny little Asus internet tablet, i have found one at Dixon's online priced at £220. However my day job (in a call centre) doesn't earn much and it will take me forever and a day to save up for it. Dixon's do offer a finance option to pay a deposit of £39 (which i can afford) and then £20 a month for 10 months (this is easily affordable). Overall the interest works out at just over £20 which i feel is a fair trade for being able to get my coveted item so quickly.

So i am sorely tempted to do this credit thing and i could do with the laptop sooner rather than later but my mother always said 'never a lender or borrower be'! What i want to know is what will it do to my credit rating if i take this option? If i pay it off with no trouble will it do me any harm? I have heard credit horror stories but i know Dixons are a well known company and therefore, one would assume, reputable.

Also, what would happen if, unlikely worst case scenario, i lost my job, got sick or for some other reason fell behind on my payments, would something like that be a dint in my credit rating or the sort of thing that means i would never be able to get a mortgage?

Thanks for taking the time to read this (and hopefully reply) sorry for such a long first post!

x
Emerald

dannynixon

Welcome to the forum.

First thing is that it will not be Dixons who give you the finance, it will be another company who Dixons use.

If you take the finance out, and pay it off without fail every month then it will do your credit rating good. The finance company will report every month to the credit agency that you use and inform them that you have paid on time. This helps to biuld your credit file.

You say you do not earn much money, do you have any other credit/loans? The finance company will look at your affordability to pay this back.

Finally, do not default on 20 per month. It will trash your credit score if you default and for only 20 a month, borrow it from someone if you come out of work to pay it.

Overall it is not costing you the earth so I would probably say go for it.

btw, good choice with the Asus

EmeraldAceBurlesque

Thanks for the advice. I don't have any other loans or a credit card so i'm really new to all this stuff. Hopefully it will all go to plan
Thanks again