WelshLamb Posted January 3, 2013 Report Share Posted January 3, 2013 Cut it up. I got into ALOT of trouble when I was your age with the damn things Quote Link to comment Share on other sites More sharing options...
Hamster Posted January 3, 2013 Report Share Posted January 3, 2013 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. Strictly speaking not right, APR is roughly around double the rate of interest you pay. A low APR of say 10% on a loan taken over 5 years for a large amount will cost you a LOT more than a smaller loan over 2 years where the APR appear much higher at say 20%. Quote Link to comment Share on other sites More sharing options...
mikky Posted January 3, 2013 Report Share Posted January 3, 2013 cut mine up 20 years ago after getting to debt....now i save up and pay cash mikky Quote Link to comment Share on other sites More sharing options...
Drayman Posted January 3, 2013 Report Share Posted January 3, 2013 (edited) A possible alternative. Anyone in the family with some money? You could write a simple agreement to borrow £1000, paid back after 20 months + 10% capital interest i.e £1100. That would be more than they are currently getting in interest on their savings. In the meantime you put your £50 a month in to a building society (don't touch it) and get a few quid interest and then pay the whole lot back after 20 months. Just get it on paper with both sides signing and both keep a copy. Not a Jimmy but have you checked Florida1 in the "other sales" section? Edited January 3, 2013 by WVAM Quote Link to comment Share on other sites More sharing options...
wannabe_keeper Posted January 3, 2013 Author Report Share Posted January 3, 2013 A possible alternative. Anyone in the family with some money? You could write a simple agreement to borrow £1000, paid back after 20 months + 10% capital interest i.e £1100. That would be more than they are currently getting in interest on their savings. In the meantime you put your £50 a month in to a building society (don't touch it) and get a few quid interest and then pay the whole lot back after 20 months. Just get it on paper with both sides signing and both keep a copy. Is that an offer hehe. Unfortunately no one is in a position to lend me it I am financially stable and not living at home (renting with my gf) and although working part-time i run my own ebay store so earn approx £1200 a month so could afford reasonable payments. I will just speak to the bank tomorrow i guess and see what they say. Hopefully they will lend it to me. If i was to borrow say £800 at the 23.9% APR and pay it back over 12-18 months what sort of monthly payment would i be looking at on the credit card - only as a last resort? Quote Link to comment Share on other sites More sharing options...
bullet1747 Posted January 3, 2013 Report Share Posted January 3, 2013 Like I said cut it up ,there is loads out there for the dosh you have ,if you havnt got it don't borrow it simples Quote Link to comment Share on other sites More sharing options...
jef Posted January 3, 2013 Report Share Posted January 3, 2013 A possible alternative. Anyone in the family with some money? You could write a simple agreement to borrow £1000, paid back after 20 months + 10% capital interest i.e £1100. That would be more than they are currently getting in interest on their savings. In the meantime you put your £50 a month in to a building society (don't touch it) and get a few quid interest and then pay the whole lot back after 20 months. Just get it on paper with both sides signing and both keep a copy. What he said. Don't use the card! JF Quote Link to comment Share on other sites More sharing options...
Northamptonclay Posted January 3, 2013 Report Share Posted January 3, 2013 I didn't realise you lot were such a sensible bunch Quote Link to comment Share on other sites More sharing options...
Joe99 Posted January 3, 2013 Report Share Posted January 3, 2013 Is that an offer hehe. Unfortunately no one is in a position to lend me it I am financially stable and not living at home (renting with my gf) and although working part-time i run my own ebay store so earn approx £1200 a month so could afford reasonable payments. I will just speak to the bank tomorrow i guess and see what they say. Hopefully they will lend it to me. If i was to borrow say £800 at the 23.9% APR and pay it back over 12-18 months what sort of monthly payment would i be looking at on the credit card - only as a last resort? You'll have to borrow more than that because there will likely be a 2.5% "fee" on top for using a credit card. Taking that into account, to pay it back over 18 months would be about £65 a month, £1170 in total. Quote Link to comment Share on other sites More sharing options...
corvid wings Posted January 3, 2013 Report Share Posted January 3, 2013 so it sounds like the £1200 you earn each month doesn't go any where near the bank.if it did they would pull your arm off to lend you £800,cut down for 4 weeks next month pay cash for the car .,stick with debit cards ,cut the credit card up! does the gf have any jewellery you could hock or sell you might have enough to buy another gun as well . Quote Link to comment Share on other sites More sharing options...
huffhuff Posted January 3, 2013 Report Share Posted January 3, 2013 Cut it up! I did exactly the same thing for a car when I was 23. I finished paying off the 20-odd thousand only last year (and I'm 31 now). It very soon spirals out of control. Things will happen in life and you'll use the card more and more (fixing car etc) and reduce to the minimum repayment. They will keep increasing what you can borrow. The overwhelming (and quite surprising for this place) advice is DON'T DO IT Quote Link to comment Share on other sites More sharing options...
Vipa Posted January 3, 2013 Report Share Posted January 3, 2013 Credit cards have been the Bain of my life since I was a young man... Get rid of it now and look for another option... Either save up or get a bank loan with a reasonable rate and a fixed term! Quote Link to comment Share on other sites More sharing options...
fenboy Posted January 3, 2013 Report Share Posted January 3, 2013 I would agree that to cut It up is the best thing .................but there is perhaps another way if you could get another card with 0% on balance transfers Barclays were doing interest free for 18 months , not sure if they still are . Pay with your card then transfer the balance to the other that offers 0% pay enough each month to clear the balance before the 0% period ends . This is only a good idea if you are sensible and cut tif original card up Quote Link to comment Share on other sites More sharing options...
MM Posted January 3, 2013 Report Share Posted January 3, 2013 Bin it young man, you are about to open up a whole world of grief. Quote Link to comment Share on other sites More sharing options...
kent Posted January 3, 2013 Report Share Posted January 3, 2013 Just don't do it. Use credit cards for protection, use them for cash flow help (when you already have the money in reserve but don't wish to use it) even unexpected emergency repair of essential items if you don't have all the cash at hand at that time yet totally have to spend the dosh . BUT never ever for such a purchase. Look perhaps at another newer smaller car from a main dealer with warranty even with a service plan using their finance and the cash you have spare as deposit? these often come with insurance deals and new cars cost less to insure for younger drivers and are far safer financially, this will also build you a credit rating not wreck it like a large running credit card balance will. Your E-bay shop sounds good BTW consider expanding things if that cash is all profit and get it declared its not good when the revenue man comes knocking Quote Link to comment Share on other sites More sharing options...
apache Posted January 3, 2013 Report Share Posted January 3, 2013 If i was to borrow say £800 at the 23.9% APR and pay it back over 12-18 months what sort of monthly payment would i be looking at on the credit card - only as a last resort? No-one wants to lend you money, because you haven't got a credit history. This credit card is your road into that. APR is annual percentage rate, so £800 plus interest is £991.20 or £82.60 per month. There is nothing wrong with credit cards if you exercise self restraint. It's actually good for you having some money in them, just make sure you don't over-spend and NEVER EVER miss a payment. I buy everything on credit cards, pay it off in full and get reward points back. And I can keep hold of my money for an extra month. They are great, but I don't make the company any money. Quote Link to comment Share on other sites More sharing options...
Fisheruk Posted January 3, 2013 Report Share Posted January 3, 2013 (edited) The majority view is don't use one unless you can pay it off in short order. Edited January 3, 2013 by Fisheruk Quote Link to comment Share on other sites More sharing options...
jonesbach Posted January 3, 2013 Report Share Posted January 3, 2013 First Q - are you sensible with cash? If the answer is no...credit cards are NOT for you If the answer is yes - an 0%interest on purchases could suit you. I made a big purchase (£1000) on one, I knew I could pay £100/month, but couldn't wait for the purchase. Ended up clearing the £1000 over 10mths interest free. Happy ending. On another note, a c/card is a good way of building credit - I had to rely on a mobile phone contract for my credit history to base my mortgage on! Didnt ever think I had a 'bad' credit - I just didnt have any! The horror stories don't have to be true if your careful. Quote Link to comment Share on other sites More sharing options...
ferguson_tom Posted January 3, 2013 Report Share Posted January 3, 2013 Get a card with no interest on purchases for the introductory period normally about 12-18 months. Work out how much you need to pay off each month so all finished by end if the introductory period so don't incur charges. Don't take cash out to buy it you need to pay as a card payment to get it interest free. There is nothing wrong with credit and as long as you don't get tempted to use the card for other things its a good an effective way off getting an interest free short term loan and also building up your credit history. Quote Link to comment Share on other sites More sharing options...
Davyo Posted January 3, 2013 Report Share Posted January 3, 2013 (edited) Do not get credit card.Your only 22 what's a 4x4 gona cost to insure,poss more than you pay for the car,so you poss end up spending more Edited January 3, 2013 by Davyo Quote Link to comment Share on other sites More sharing options...
ferguson_tom Posted January 3, 2013 Report Share Posted January 3, 2013 It has been covered but the biggest problem the OP has is he has no credit history if in a couple of years he wants to get a mortgage he won't be able to as when you don't have a house it's difficult to build up history all you have is car insurance on monthly and phone contract. The quickest way to get history is a credit card if carefully managed and used correctly there is nothing wrong with them. I would suggest buying the car and setting up a monthly direct debit and then put the credit card in the back of your wardrobe or even get your mum to hide it. If its in your wallet you will use it. Quote Link to comment Share on other sites More sharing options...
Vipa Posted January 3, 2013 Report Share Posted January 3, 2013 It has been covered but the biggest problem the OP has is he has no credit history if in a couple of years he wants to get a mortgage he won't be able to rubbish! Quote Link to comment Share on other sites More sharing options...
Greymaster Posted January 3, 2013 Report Share Posted January 3, 2013 (edited) I guess you are buying from a dealer who would take the balance via his merchant account onto your credit card. (Or you intend drawing down £800 cash on the card which will incur a transaction fee of around 3%. Using simple interest calculations and provided you do pay £50 per month off the balance (with absolutely no further transactions on the card) you will incur about £16/month interest in the early months, tapering down in the later months. It will take you 20 months of iron will discipline to pay off the £800 and you will have been charged about £173 interest and £24 fee. You could try to barter the dealer down by £200 to cover your finance charges and he might agree, to seal the deal. But then again you might have got £200 knocked off for cash. Problems arise when you get unexpected bills to keep the car going and suddenly you are up to your neck in debt. Edited January 3, 2013 by Greymaster Quote Link to comment Share on other sites More sharing options...
HDAV Posted January 3, 2013 Report Share Posted January 3, 2013 (edited) No-one wants to lend you money, because you haven't got a credit history. This credit card is your road into that. APR is annual percentage rate, so £800 plus interest is £991.20 or £82.60 per month. There is nothing wrong with credit cards if you exercise self restraint. It's actually good for you having some money in them, just make sure you don't over-spend and NEVER EVER miss a payment. I buy everything on credit cards, pay it off in full and get reward points back. And I can keep hold of my money for an extra month. They are great, but I don't make the company any money. Well said credit cards are there to make banks money, some people make them work for them most don't. Back to basics..... Setting up a shoot, must take more than a small thirsty 4x4 to set up...... You have a business plan? Investment? I have had credit cards for 10+ years, since 19 and not got into serious debt with them for a long time no debt now a little which I pay off as much as possible each month but when a car you need for work needs repairs etc they are very useful but for toys etc Basically if the decision to buy is down to your heart don't use a credit card, if it is down to your head, consider it. Just remember if the car gets written off blows up, crashed, stolen etc you'll still be paying for it.........credit card bank loan or finance........ There is little reward without risk in the world, the experts talk about good debt and bad debt, debt isn't all bad, but it isn't a decision to take lightly..... Edited January 3, 2013 by HDAV Quote Link to comment Share on other sites More sharing options...
Will Poon Posted January 4, 2013 Report Share Posted January 4, 2013 rubbish! erm no, I've been told that many of times and it makes sense to borrow money sometimes and pay it back in good time it will defo give you a good credit rating for future borrowings , Vipa ... Are you a Troll? Quote Link to comment Share on other sites More sharing options...
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