Sainsbury's Credit Card Borrowing

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Clam_abuse
Clam_abuse Posts: 7 Forumite
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in Credit cards
Daft question here but I've applied and recieved a Sainsbury's Credit Card. I also applied and was approved to borrow £2500 on it.

I've got the card but not heard anything about the loan. Do I just transfer the money from the card?

Sorry, I've never had a credit card before. :o

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  • madvicker
    madvicker Posts: 157 Forumite
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    Do you have a debit card? A credit card works in the same way. You pay for things in shops, but the difference is that a debit card uses money from your own funds, the credit card will use money from the lender. In this case, your available funds would be £2,500. You then need to pay back the money spent on the credit card - if you don't pay it all, then you are charged interest. If you pay it all back, you won't be charged interest.

    But can I ask, why did you apply for the credit card in the first place?
  • Willing2Learn
    Willing2Learn Posts: 6,294 Forumite
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    Clam_abuse wrote: »
    Daft question here but I've applied and recieved a Sainsbury's Credit Card. I also applied and was approved to borrow £2500 on it.

    I've got the card but not heard anything about the loan. Do I just transfer the money from the card?

    Sorry, I've never had a credit card before. :o

    I'm not sure whether you are joking or not.

    A credit card is used to buy stuff in shops using a credit card and then you pay Sainsbury back, preferably in full, when a statement arrives at the end of the month. You can purchase goods up to £2500 on that card.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • Clam_abuse
    Clam_abuse Posts: 7 Forumite
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    I applied for the card because I knew I could borrow some additional money on it interest free.

    Not sure how to access that money now!

    I'll just ring them up.

    Thanks anyway.
  • madvicker
    madvicker Posts: 157 Forumite
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    Clam_abuse wrote: »
    I applied for the card because I knew I could borrow some additional money on it interest free

    That's a very worrying statement when combined with your first post.....are you sure you're on top of your finances and borrowing for something you actually need to borrow for? More importantly, what are you planning to buy? How you buy it has a significant impact on how you finance it.
  • Clam_abuse
    Clam_abuse Posts: 7 Forumite
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    madvicker wrote: »
    That's a very worrying statement when combined with your first post.....are you sure you're on top of your finances and borrowing for something you actually need to borrow for? More importantly, what are you planning to buy? How you buy it has a significant impact on how you finance it.

    Wasn't planning on using the card, just got it for the loan.

    Assumed a few people had done it, hence the question.

    It's only £2.5 k, fella.
  • madvicker
    madvicker Posts: 157 Forumite
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    Clam_abuse wrote: »
    It's only £2.5 k, fella.

    While I agree it's not a significant amount to borrow in comparison with some I have seen, it's not the amount I am concerned about. It's the lack of understanding of the financial product, that you have already applied for, that may not suit your needs....

    Most people in significant debt start with "It's only £<insert amount here>"

    Back to the point:
    Yes many people use credit cards to borrow money, but without knowing what you need the 2.5k for its difficult to recommend a cheap borrowing option. For example:

    - If you can buy it with a credit card a 0% purchase offer is what you need. Then you buy the product/service and pay off the credit card in monthly chunks so you pay off the balance before the 0% deal expires.

    - If you can only buy the product/service using cash then you get a loan, or a credit card with a 0% money transfer deal. A money transfer deal works in that you speak to the lender and ask them for a money transfer to your current account for the amount you need. And in this scenario, it will depend on whether you can get a large enough limit on a card to get the money you need.
  • Vortigern
    Vortigern Posts: 3,245 Forumite
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    Clam_abuse wrote: »
    Wasn't planning on using the card, just got it for the loan.
    What is the purpose of the loan?

    If you say what the loan is for, we could perhaps explain how to achieve your aim using the credit card.
  • molerat
    molerat Posts: 31,922 Forumite
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    You have taken the wrong product for your requirement. To get a "loan" you need to use the money transfer option which they offer for a 4% fee + 25.95% APR.
  • Clam_abuse
    Clam_abuse Posts: 7 Forumite
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    !!!!!!.

    Only I could mess up something so easy.

    It's just for some building work being done on the house. It ran over budget so I need a bit extra on top of my savings I used.
  • Vortigern
    Vortigern Posts: 3,245 Forumite
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    Clam_abuse wrote: »
    It's just for some building work being done on the house. It ran over budget so I need a bit extra on top of my savings I used.
    Can you pay the builder by credit card?

    Or put all your normal spending on the credit card and use the cash you would have spent to pay the builder.

    Or get a money transfer card as per post #9

    Or apply for a loan.
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