Best way of borrowing money

[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