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some advice needed RE: my credit card!?


wannabe_keeper
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Do not use the credit card for buying a vehicle, I done that several years ago and it was a big mistake, one of many I made, trusting a banks advice was another one but thats another story. I've now turned myself around after having serious financial problems and do have a credit card again all be it with an extortionate interest rate, I only however use it to buy the diesel for my truck every month then it is paid off in full at the end of every month, by doing this its rebuilding my credit rating and is all that I would suggest that you use a credit card for. For the amount that you've saved it would be possible to find a decent 4x4 suitable for your needs, when I was your age (2002) I bought a 12 year old Fourtrak with 112k on the clock for £1200 and it was one of the most reliable vehicles I've ever owned in the 48k miles I had it and was still going strong when I traded it in for a newer model, something like that could still be found and they are relatively cheap to insure hence why I had one.

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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? ???

 

No... I'm a mortgage broker and financial adviser and have been for 20 years.... what you posted was utter rubbish...

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No not really, but as the original post has said he wants to pay off money on a credit card surely it goes for his credit ratings for future use surely ???

 

Having existing credit has little do do with obtaining a good score nowadays... other forms of credit yes but not mortgages, if one is to follow the current FSA line of thinking, less is very much more... not having credit WILL NOT stop him getting a mortgage in the future. It all boils down to affordability nowadays and, in order to stop themselves falling foul of the regulator, the broker and then the lender will tear apart the applicants bank statements to prove affordability.. existing credit, whilst it will (sometimes) improve a score card is not as important as it used to be..

 

Much more important is being on the voters roll, having been in a steady job for more than a year will help greatly and other than that, points are awarded for age, having a landline phone (if renting,) having a company pension... the list goes on and varies greatly from lender to lender but the voters roll is crucial... if they can't see you on it, most lenders will turn you down flat or make you jump through silly hoops.......

 

Let me tell you all why being a credit card provider is so damned good, even when you are staring at millions (possibly billions) of bad debt...

 

The AVERAGE time it takes to repay a CC debt in the UK is over 10 years... now, bear in mind this is the average and takes into account the significant number who pay the debt off every month (and whilst significant, not many have the discipline, willpower or resources to do this)... that means the true average of those who keep a balance is much longer!

 

CCs are a bit like drugs... once you start to use them, it's difficult to stop... for lots of reason but the 2 main ones are... you become accustomed to instant gratification AND more importantly, whilst CCs give you instant purchasing power, they very quickly erode your disposable income and you very quickly end up in a debt cycle where your disposable income ends up just servicing the CC debt and, if you want something, the only way you can do it is to either wait until you have enough available credit again or take on more credit which inturn makes the problem worse... Effectively you develop a dependency on credit cards.

 

The next step is to take out a consolidation loan or remortgage to get rid of the cards but very few then close the accounts... they are too used to getting things NOW.. and so.. after consolidating, just rack the cards up again...

 

So.... the CC company just end up sat on masses of customers handing over massive amounts of interest every month with no way out... almost for life...

 

As a business model... probably the most lucrative and profitable industry in the world next to the international drug dealer who never gets caught!

As a consumer, probably the most dangerous thing you can do next to becoming a good customer of the above drug dealer!

 

Once you start, chances are you won't stop and it has the potential to ruin your life or at best make it very stressful... unless you are one of the ones mentioned by a few who can show some constraint... sadly, I have only ever met a few, the majority are up to their necks!

Edited by Vipa
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Personally, I can see Vipa's point. My cards are for convenience and I pay them off completely at the end of the month. I know too many people who have got into she'd loads of misery through poor financial management. Their only sin was believing what they were told - the CC industry have been pushing the "get it now" ethic for years. If it did not work, they would not be paying millions for advertising. Once you change an attitude to one area of financial attitude it has a nasty habit of affecting other judgements.

 

I know nothing about gamekeeping and neither have I run a shoot BUT the principles of creating a viable business are the same whatever you choose to do:

 

1. Have a detailed plan and go over it with someone who knows what they are talking about. Do not be optimistic and factor in ALL costs. It is easy to forget things like public liability insurance, maintenance and replacement of equipment, provision for what happens when your vehicle breaks down etc.

2. Investigate the various schemes to assist young people to set up their own business. There are loans available that operate in a similar fashion to student loans - you only need to pay them back once the business starts making money. There are also start-up grants that do not need to be repaid.

 

The cash you are asking for is pretty modest and if you have a potentially viable business and can show it, I would see that you should have little difficulty raising that kind of investment. One big question that I would be asking is about the contract you have with the land owner that allows you to run a shoot on their land - without something in writing you have very little to invest in.

 

If you think you could convince me, get in touch.

 

Nick

Edited by NickS
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as many others have said ........ cut it up now! if you use it you will regret it, they are only any good if you have the money but want security for purchasing

 

buy what you can afford, factor in insurance, repairs, tax and fuel, if you only want it for running around the shoot then look for an old disco and park it at the farm (no tax insurance or repairs and run it on red), all 4x4's will burn a hole in your pocket fast and your going to need more money than you think with the shoot

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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.

 

you do make them money, all retailers pay a fee for accepting them so they have already coughed up a percentage at the till.

 

As said the purchase price of a vehicle is the small bit and if you can't afford that then odds are the rest of the costs will cripple you. Best option is a small car to get you to the shoot and then either walk or get a non road legal 4x4 to run about in

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take it from me and personal experience of 45k many years back the only good thing for a credit card is a pair id scissors..... it took years for me to recover from the debt and now after learning the hard way what these chaps are saying is right...... if you not got the coin to buy it you dont get it simplzzzz

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Having existing credit has little do do with obtaining a good score nowadays... other forms of credit yes but not mortgages, if one is to follow the current FSA line of thinking, less is very much more... not having credit WILL NOT stop him getting a mortgage in the future. It all boils down to affordability nowadays and, in order to stop themselves falling foul of the regulator, the broker and then the lender will tear apart the applicants bank statements to prove affordability.. existing credit, whilst it will (sometimes) improve a score card is not as important as it used to be..

 

Much more important is being on the voters roll, having been in a steady job for more than a year will help greatly and other than that, points are awarded for age, having a landline phone (if renting,) having a company pension... the list goes on and varies greatly from lender to lender but the voters roll is crucial... if they can't see you on it, most lenders will turn you down flat or make you jump through silly hoops.......

 

Let me tell you all why being a credit card provider is so damned good, even when you are staring at millions (possibly billions) of bad debt...

 

The AVERAGE time it takes to repay a CC debt in the UK is over 10 years... now, bear in mind this is the average and takes into account the significant number who pay the debt off every month (and whilst significant, not many have the discipline, willpower or resources to do this)... that means the true average of those who keep a balance is much longer!

 

CCs are a bit like drugs... once you start to use them, it's difficult to stop... for lots of reason but the 2 main ones are... you become accustomed to instant gratification AND more importantly, whilst CCs give you instant purchasing power, they very quickly erode your disposable income and you very quickly end up in a debt cycle where your disposable income ends up just servicing the CC debt and, if you want something, the only way you can do it is to either wait until you have enough available credit again or take on more credit which inturn makes the problem worse... Effectively you develop a dependency on credit cards.

 

The next step is to take out a consolidation loan or remortgage to get rid of the cards but very few then close the accounts... they are too used to getting things NOW.. and so.. after consolidating, just rack the cards up again...

 

So.... the CC company just end up sat on masses of customers handing over massive amounts of interest every month with no way out... almost for life...

 

As a business model... probably the most lucrative and profitable industry in the world next to the international drug dealer who never gets caught!

As a consumer, probably the most dangerous thing you can do next to becoming a good customer of the above drug dealer!

 

Once you start, chances are you won't stop and it has the potential to ruin your life or at best make it very stressful... unless you are one of the ones mentioned by a few who can show some constraint... sadly, I have only ever met a few, the majority are up to their necks!

oh..
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Vipa quoting ten years as the average time to pay off a CC is downright terrifying. Mostly because many pay them off at the end of the month, I do know a few mature, educated and otherwise responsible people who have got into serious trouble with them so " they are like drugs" sort of sums this up. What that 10yr term shows is there must be some who carry CC debt for the whole of life

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Its called living beyond your means and it is a trap people get into, what seems affordable just means the interest you pay reduces your disposable income and you end on a downward spiral. I make money out of my credit card as it pays 1% cashback but its on DD for the full balance monthly and staying that way

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Cut it up is the best bet ,

 

SOUND ADVICE, save up till you have the cash mate,

my motto is if you cant afford it save up till you can , owe no one apart from the mortgage on your house. I have a credit card for booking holidays only because you are insured against fraud etc, but i make sure that I have the cash to pay the card/bill off straight away. Its the only time it gets dug out of its hiding place and used is to book holidays, but as said I have already saved up for the hol in the first place.

 

atb

 

flynny

Edited by flynny
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If you aren't convinced..... A couple of additional 'eye openers' for you...

 

On a card with an average 2.5% per month interest charge, it will take more an 26 years to repay the debt if you pay the minimum payment each month!

 

If you borrowed £2,500 that would ultimately mean repaying more than £6,000!!!!! Some cards are (much) worse than others.... with one mainstream provider the way they have it set up would mean 45 years and a repayment of over £11,000!!!

 

Legalised loan sharks... That's all they are!

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Definitely DO NOT get someone to apply for a loan on your behalf as someone suggested. That is pretty serious fraud!

 

Best suggestion is to get someone you know to officially loan you the money. Downside to that is what happens if you can't pay it back for any reason - do you want to be in hock to family and friends?

 

Save up or buy something less expensive.

 

J.

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Thanks for all the replies guys just had a good read through and there some really sound advice there. Ive decided to scrap the idea of the vehicle purchase on the credit card but will however keep it for minor purchases (petrol, shopping etc...) and pay it off on time to try and build up my credit rating as this will obviously benefit me in the future with borrowing money for a mortgage/loan etc... should i need it.

 

I have looked around and i think i may be able to get what im after a bit cheaper, even if it does mean saving for a couple more months.

 

(In regards to setting up the shoot, that is all in order and yes a small 4 x 4 like this will be perfectly suited.

EBay store is all done by the books as im self employed so tax is paid that way.)

 

Thanks again for some top notch advice :good:

 

Harry

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Thanks for all the replies guys just had a good read through and there some really sound advice there. Ive decided to scrap the idea of the vehicle purchase on the credit card but will however keep it for minor purchases (petrol, shopping etc...) and pay it off on time to try and build up my credit rating as this will obviously benefit me in the future with borrowing money for a mortgage/loan etc... should i need it.

 

I have looked around and i think i may be able to get what im after a bit cheaper, even if it does mean saving for a couple more months.

 

(In regards to setting up the shoot, that is all in order and yes a small 4 x 4 like this will be perfectly suited.

EBay store is all done by the books as im self employed so tax is paid that way.)

 

Thanks again for some top notch advice :good:

 

Harry

Well done

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Yes, well done! The temptation with a credit card is huge. Someone once gave me some great advice, pay for everything in cash as it makes you really think about the purchase you're about to make, purchase on a card and it's so much easier as you're not handing over cash! Secondly if you don't have the money then you can't afford it.

 

I pay my card off every month but on both sides of the family we have relatives who have overspent on cards, a close relative has racked up £70k on cards and walked into the bank recently to say that they can't afford to pay their bills. This I suspect is going to cripple them financially and they both have good jobs....

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