[sim667]

Hey all, was wondering what the best to borrow a small amount of money is, and how to pay the least interest.

The item i want to buy is £1802.46, and i have £1000 save up for it. Which means I need £802.46. Would i be best of going down credit card route or taking out finance?

I have no credit cards and absolutely no debts.

[Simon_143]

I am sure you could find a credit card that are offering 0% on purchases for at least 10 months, so you would only need to pay the minimum each month for 10 months.

After the 10 months you would have to pay off the whole amount outstanding or you will start incurring interest.

This would probably be the cheapest option, as long as you pay off the whole amount before the zero interest ends.

[davisneil]

how about an 0% for 12 months on purchases card?Put the whole purchase amount on the card, stash the 1000.00 you have into a high interest savings account, and each month for 12 months, save the remaining 800 pounds you need eg:

1800 debt

-1000 already in saving account

equals 800 to pay over 12 months (period of interest free offer...)
800/12 =66.66 a month.

That way no interest accrued, in fact you make interest on the money you are putting by. only pay off the card when the deal coming to an end.

A better way, get an MBNA card tht allows you to do a Balance Transfer to your current account, again at 0%.

withdraw the entire credit line and cut the card in half. Again, put this money and your 1000 pounds in a saving account or ISA....

Buy your item and save the extra 800 pounds over the year.

[sim667]

i see what ur saying davisneil, but i dont think credit card companies will give me £1800 credit limit.... i think i will be lucky to get £800 tbh.

Simons plan is what i did with my last largish purchase, it worked well for me, i was just wondering if anyone knew of any alternatives.

[DJT75]

Originally Posted by sim667

i see what ur saying davisneil, but i dont think credit card companies will give me £1800 credit limit.... i think i will be lucky to get £800 tbh.

You think? As long as you're over 18 you could get at least 5 cards today all with £2000 minimum easy. Not that you should of course...

[davisneil]

if you did what simon said, i assume that youve had cards before hence a good credit rating? you may be surprised, and you could lose nothing by applying

if your credit rating is not so great, you could try borrowing the 800 pounds from a local credit union? DO NOT borrow from vanquis bank, provident,etc.....first step on the long road to ruin! Ps: I have a OM10 too

[kopchoir]

you have 1k saved save up the other 800
i know other sensible people who got a credit card for something similar then went and wacked the card a bit more and ended up with more debt i did the same years ago to i now dont do credit or any debt just my mortgage no overdraft nothing i suggest just saving up the other 800 quid and waiting the items yours through hardwork and you dont owe anyone a penny

[sim667]

Its to buy a new comp.... i really dont think mine will last the length of time it takes me to save up the £800 i need (the screen is also £700 and i need to start saving up for that too).

I have no credit card at the mo and ive worked out that interest free on a credit card it'd only cost me £66 p/month.

[Mr Incredible]

0% on purchases on a new card application now. Then at the ned of the 0% period apply for another card which has a 2% fee for balance transfers and then you'll another 0% for say 9-12 months.

[sim667]

sounds like credit card is the way to go.... im gonna go and look for one.

[Jenn]

I'm don't know how loan acceptance work but if you can get a credit card with £800 limit what makes you think some else will lend you the money?

[sim667]

Originally Posted by Jenn

I'm don't know how loan acceptance work but if you can get a credit card with £800 limit what makes you think some else will lend you the money?

I dont understand what your asking?

Im more likely to get a card with an £800 limit than an £1800 limit, thats what i was saying. You get me?

[mjn]

Get a 0% for 12 months credit card, buy your purchase, then cut the card in two, and pay off the credit card in 12 monthly payments.

[Sinzer]

What screen are you buying for 700 quid!!!???!!!

£200 will easily get you a decent 22" widescreen?

Why not lower what you want, instead of getting credit?

You could pay 1K for a PC and get a really decent system, then upgrade it later when you save the 800. More than likely you will end up with a better system than paying 1800 quid for it now.

[dan1979]

This is how I always spend.

Just about to start on my third card with 0% on purchases, pay the minimum off each month and clear the balance at the end of the introductory offer.

Some cards will give you freebies for spending on them as well, had some John Lewis vouchers and will get £15 voucher first time I use my new amazon card

[sim667]

Originally Posted by mjn

Get a 0% for 12 months credit card, buy your purchase, then cut the card in two, and pay off the credit card in 12 monthly payments.

thats the plan


Sinzer..... i want an eizo screen they dont come cheap! but they're the best quality for photography by far! I dont use PC's either im a mac boy

Dan- there's actually a official term for people who do that but i cant remember it of the top of my head

[mjn]

Originally Posted by sim667

Dan- there's actually a official term for people who do that but i cant remember it of the top of my head

"Card Tart"

[Daddy k]

would your own bank not do you a good rate?

try going to cash geberators and putting your current and dying pc on buyback (i think they give you more for buyback) then never returning for it or feeling guilty that you sold a dodgy machine on to some poor sod

[Sinzer]

Sinzer..... i want an eizo screen they dont come cheap! but they're the best quality for photography by far! I dont use PC's either im a mac boy

Fair enough, I thought it sounded like you were buying a mac for that price, hard pushed to find a PC costing that

If you want it for digital editing, then it will cost you a fair bundle

Best bet is to go for 0% credit card, if you are buying from a dealer, then they will more than likely accept part payments, so pay 800 on credit and the rest from the bank.

[Jenn]

Originally Posted by sim667

I dont understand what your asking?

Im more likely to get a card with an £800 limit than an £1800 limit, thats what i was saying. You get me?

Sorry I thought you meant you wouldn't get £800 limit on a card so was saying you wouldn't be likely to get a loan either then.

[dan1979]

Originally Posted by sim667

Dan- there's actually a official term for people who do that but i cant remember it of the top of my head

I think moneysavingexpert refers to it as 'stoozing' or something like that.

I'd never thought of it and avoided credit cards until a financial adviser (the father-in-law) suggested it to me.

It makes a lot of sense for something for buying an annual railcard as opposed to more expensive monthly ones. It's not like the credit card companies don't make enough money so if I can cream a few quid off my savings all the better

Perfect for tight people like me who would never get carried away and spend more than they can afford.

[sim667]

I am buying it for Photoshopping and workflow etc..... i do the odd photographic job so need something that can do hardcore number crunching!

I dont really wanna trade my current one it as its really good for sitting infront of the tele....

the plan was to buy the desktop then after saving up some more money trade my laptop in against a reconditioned 12 inch macbook pro. but to be honest you never actually end up getting rid of a mac, ive got a g3 powermac mt 233mhz sitting at home and it still runs itunes, t'internet etc, its great!

[steptoe]

probably the best way to borrow
http://www.abcul.org/page/about/borrowing.cfm

[gazbarber]

check out www.fool.co.uk gives good advice and has comparision tables for most the best deals out there.

You say you're a Mac fan? Good choice but to answer your question...

Go to the Apple Store UK, look at finance options.... you can 6 months interest free credit there.

Cwonline.co.uk also offer this and may be more into trade ins as they are independent.

[Kevstir]

if you shop at Tesco's and are still going down the credit car line have a look at the Tesco's credit cards, you get Tesco's points on what you spend, 1 point for every pound you spend in Tesco's and 1 point for every £2 you spend else where.

Kev

[h4rri]

Originally Posted by Kevstir

if you shop at Tesco's and are still going down the credit car line have a look at the Tesco's credit cards, you get Tesco's points on what you spend, 1 point for every pound you spend in Tesco's and 1 point for every £2 you spend else where.

Kev

Yeah I got one of those, Tesco wouldn't accept their spanking new card with massive limit but Boots would. Then Game wouldn't accept it but Woolies would, found using that card soo embarrasing when they get getting rejected that I binned it. Also sure they don't add 'all' the points too as my total has dropped since getting it.

My advice to the OP would be get an MBNA card and balance transfer the cash off that to grab the PC. With the Apple offer you need to fill forms etc in and I got bored of waiting for them to arrive

[mjn]

Originally Posted by h4rri

Also sure they don't add 'all' the points too as my total has dropped since getting it.

I used to have a Sony card, were you received points, and i noticed the same thing (points reducing some months)

Turned out, that the points actually expire and you had to spend them within 12 months. Which made saving up for any item which required a large amount of points impossible.

[meansizzler]

Originally Posted by sim667

Its to buy a new comp.... i really dont think mine will last the length of time it takes me to save up the £800 i need (the screen is also £700 and i need to start saving up for that too).

I have no credit card at the mo and ive worked out that interest free on a credit card it'd only cost me £66 p/month.

When it comes to computers, it's really best to buy it part by part, or buy the cheapest thing and then jsut upgrade it, by the time you paid it off you would think that you have jsut wasted £1800 considering what is available now and the spec/price of it, all would of been for nothing...