wannabe_keeper Posted January 3, 2013 Report Share Posted January 3, 2013 (edited) Hi Guys, Bit embarrassing to ask but i am only 22 and have just received my first ever credit card in the post. I have read through it but i just wanted some advice on something i was planning. I want to buy a Suzuki Jimny for £2500 and i can stump up about £1700 of my own money and was going to use my credit card for the rest (£800 or so). My limit on my credit card is £1500. If i was to use say £800 - £1000 on my credit card in one lump sum and pay off say £50/month will this be okay? I cant see anywhere about how much the minimum payments are in relation to how much you borrow. Is this a stupid idea as will i be paying off a vast amount in interest over say a year or 18 months it would take to clear the balance? The APR is 23.9% variable but this means little to me as i have only ever used my current account since i was 16 Sorry to come across naive and as if i am aged about 11 but any help would be great Thanks in advance, Harry Edited January 3, 2013 by wannabe_keeper Quote Link to comment Share on other sites More sharing options...
bullet1747 Posted January 3, 2013 Report Share Posted January 3, 2013 Cut it up is the best bet , Quote Link to comment Share on other sites More sharing options...
shaun4860 Posted January 3, 2013 Report Share Posted January 3, 2013 minimum payments are usually £5 or 5% whichever is the greater, yes £50 per month will cover your payment but will takes forever to clear it, most of your £50 will go on interest, Bank loan if you can get one is the better bet Quote Link to comment Share on other sites More sharing options...
huffhuff Posted January 3, 2013 Report Share Posted January 3, 2013 (edited) Probably not what you want to hear, but I'd recommend you keep saving until you have the extra dosh you need. Don't use the card. Better still, cut the sucker up! Edited January 3, 2013 by huffhuff Quote Link to comment Share on other sites More sharing options...
Northamptonclay Posted January 3, 2013 Report Share Posted January 3, 2013 Get one with 0% on purchases and pay it off in time, minimum payment is normally around 2.5% but at that rate it will take forever, cut it up !!! Quote Link to comment Share on other sites More sharing options...
TopDown Posted January 3, 2013 Report Share Posted January 3, 2013 Usualy minimum payments are 2% or more of your balance. If you borrowed £1000 at that rate and only paid £50 per month it would take you over 2 years to repay and you would be charged nearly £300 in interest. It's not a great idea to use a credit card for this type of transaction. A loan would be cheaper Quote Link to comment Share on other sites More sharing options...
billytheghillie Posted January 3, 2013 Report Share Posted January 3, 2013 CUT IT UP! Quote Link to comment Share on other sites More sharing options...
Zapp Posted January 3, 2013 Report Share Posted January 3, 2013 Cut it up is the best bet , Agreed. Quote Link to comment Share on other sites More sharing options...
gixer1 Posted January 3, 2013 Report Share Posted January 3, 2013 Do not use the credit card for this, I'm not sure if you mean pet it with the credit card to a dealer or withdraw the cash on the credit card - if the latter it's worse as there can be a higher rate for cash on some cards! Your best bet is a bank loan or save for it. Regards, Gixer Quote Link to comment Share on other sites More sharing options...
wannabe_keeper Posted January 3, 2013 Author Report Share Posted January 3, 2013 Cut it up is the best bet , LOL Quote Link to comment Share on other sites More sharing options...
TopDown Posted January 3, 2013 Report Share Posted January 3, 2013 Not sure if this will go for more than the amount you have and looks tidy enough. Maybe shop a bit harder within your budget? http://www.ebay.co.uk/itm/Suzuki-Jimny-2001-Blue-Soft-Top-LOW-MILEAGE-/181052992359?pt=Automobiles_UK&hash=item2a27996b67 Quote Link to comment Share on other sites More sharing options...
gixer1 Posted January 3, 2013 Report Share Posted January 3, 2013 LOL To be honest - it's actually right! The only reason I carry a credit card is for travel all buying protected over the net, otherwise they are a pest and it is way to easy for people to get into trouble with them! Regards, Gixer Quote Link to comment Share on other sites More sharing options...
scimitar Posted January 3, 2013 Report Share Posted January 3, 2013 A loan would be cheaper, but remember to shop around as rates vary greatly and watch out for the cowboys. Quote Link to comment Share on other sites More sharing options...
wannabe_keeper Posted January 3, 2013 Author Report Share Posted January 3, 2013 No one will seem to do me a loan though as i've never borrowed before so am an unknown risk, i'm 22, don't own a house, only work part-time etc... Have applied to so many (including my own) banks - ALL REJECTED! :( Quote Link to comment Share on other sites More sharing options...
fielddweller Posted January 3, 2013 Report Share Posted January 3, 2013 (edited) Cut it up. Youve obviously got a decent credit score to get a card with that limit and balannce,so get a loan.Have a look at the supermarkets,they are offering good rates at the moment. ATB Fielddweller Sorry just seen your last post Edited January 3, 2013 by fielddweller Quote Link to comment Share on other sites More sharing options...
gixer1 Posted January 3, 2013 Report Share Posted January 3, 2013 No one will seem to do me a loan though as i've never borrowed before so am an unknown risk, i'm 22, don't own a house, only work part-time etc... Have applied to so many (including my own) banks - ALL REJECTED! :( I totally understand and it's very difficult situation but it really wouldn't be worth getting into trouble with a credit card. You may be best going into the bank and speaking to the loan advisor and explaining the situation, you may find you get a more favourable answer if you can demonstrate how and when you intend to pay and also that you can pay. Regards, Gixer Quote Link to comment Share on other sites More sharing options...
mel b3 Posted January 3, 2013 Report Share Posted January 3, 2013 the fellas have just about summed it up , dump the credit card and save the money , youll be surprised how quickly youll save it , i can never understand borrowing money , i just think that if you cant afford to save up the money before you buy something then you certainly cant afford to pay for it later with added interest , dont flame me its just my opinion . Quote Link to comment Share on other sites More sharing options...
Frenchieboy Posted January 3, 2013 Report Share Posted January 3, 2013 Got to admit that I agree with most of the previous posts. I am rather ashamed to admit that my wife and I got into the credit card lark and it took us ages to get out of the mess that we created for ourselves. These credit companies have made it all too easy to get yourself into so much debt that it takes forever to clear your name. Fortunately we are now just about clear but all I can say is NEVER AGAIN WILL I TAKE ON ANY CREDIT CARD even though we are still being bombarded with offers of new credit cards with even higher credit limits. If you really must go to your bank and take on a fixed rate load and make the regular payments by standing order! Whatever you do please be aware that it is all too easy with credit cards to get into thesame sort of terrible mess that we got into and I wouldn't wish that sort of stress on anyone. Quote Link to comment Share on other sites More sharing options...
pimpkiller Posted January 3, 2013 Report Share Posted January 3, 2013 (edited) as long as you pay the thing off quick a credit card isnt a bad way of borrowing money say in 2-3 big payments you dont want to spread it out over a long time though it racks up. Having recently bought a car on finance its not actually that bad one place wanted 32% APR for 2 year and thats if they lend in the first place. I use a credit card but always pay it in FULL when the bill comes, its like a 60 day free loan Edited January 3, 2013 by pimpkiller Quote Link to comment Share on other sites More sharing options...
scobydog Posted January 3, 2013 Report Share Posted January 3, 2013 Don't do it, look for a cheaper vehicle or save a bit more if you can. Good luck S Quote Link to comment Share on other sites More sharing options...
wannabe_keeper Posted January 3, 2013 Author Report Share Posted January 3, 2013 Thanks for the advice guys i think i will pop into Lloyds tomorrow and see what they say. Taking longer to save would be my more favourable option as this is always how i was brought up to save for things rather than borrow however i need to get a 4x4 by the end of the month as i am setting up my own shoot and am going to need transport to get around it from Feb onwards! Thanks again Harry Quote Link to comment Share on other sites More sharing options...
Hamster Posted January 3, 2013 Report Share Posted January 3, 2013 Credit cards are fine when used to spend what you already have , £1700 would buy you a decent enough car and it won't handle like a dodgems. Quote Link to comment Share on other sites More sharing options...
OddJob Posted January 3, 2013 Report Share Posted January 3, 2013 (edited) The APR means that, over a year, you will pay 23.9% extra for the amount you put on there, £239 if you put £1000 on it meaning you pay back £1239 over a year. That is a lot and will kill you monthly. Save up the extra money as it will be quicker and less costly overall, though it does mean you have to wait for buying a new toy. Credit cards are not something to use for long term loans at all. You could soon find yourself struggling to tread water. Do not do it, especially only at 22. Most car finance is between 6% and 12% so this shows a comparison. Edited January 3, 2013 by OddJob Quote Link to comment Share on other sites More sharing options...
Eskoky Posted January 3, 2013 Report Share Posted January 3, 2013 No one will seem to do me a loan though as i've never borrowed before so am an unknown risk, i'm 22, don't own a house, only work part-time etc... Have applied to so many (including my own) banks - ALL REJECTED! :( Best bet is to use your card for a few months for SMALL purchases - buy your groceries on it and pay back 80% of the amount at the end of the month, do the same again for a few months and then clear off the balance. This will build you a credit rating and you'll then be able to apply for a loan to finance your motor. Don't use the card for a big purchase. Quote Link to comment Share on other sites More sharing options...
poontang Posted January 3, 2013 Report Share Posted January 3, 2013 I guess it all depends on how good you are with money? No disrespect but at 22, working part time and, presumably living at home, I'd say it's pretty irresponsible of the card company to give you a card with that sort of limit. They, of course would love it if you paid the balance for your Suzuki with their card. As has been said try and get a bank loan, it's cheaper. If you can't get one could you maybe get your parents to take one out on your behalf, and you pay them back? It'll be a lot cheaper in the long run. Get rid of the credit card until you're financially independent, and have enough spare cash and savings, before even thinking of getting another card. Trust me, it really is the best way to go. Quote Link to comment Share on other sites More sharing options...
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