steve_b_wales Posted October 13, 2014 Report Share Posted October 13, 2014 In work last night, my mate was talking about buying himself a motorbike. He's seen one for £950. He said that he is going to buy it on his credit card, then apply for a Barclays one with the above offer, and transfer the balance onto that card, giving him 34 months of interest free credit. I don't think he can do that, as looking at the advert (compare the market.com) I think he would have to transfer a balance at the time of applying for a new card. I think its a good idea though if he can do it his way. There is a 2.99 fee to pay, but he's happy with that. Quote Link to comment Share on other sites More sharing options...
Kes Posted October 13, 2014 Report Share Posted October 13, 2014 There's always a percentage fee with balance transfers, 2-3% of the balance transferred and I agree with your assessment. When you start the card you have to state the balance you wish to transfer. Coul still work out cheaper even with a 2% fee, but zero cost for 34 months? Unlikely at best. Quote Link to comment Share on other sites More sharing options...
Piebob Posted October 13, 2014 Report Share Posted October 13, 2014 In work last night, my mate was talking about buying himself a motorbike. He's seen one for £950. He said that he is going to buy it on his credit card, then apply for a Barclays one with the above offer, and transfer the balance onto that card, giving him 34 months of interest free credit. I don't think he can do that, as looking at the advert (compare the market.com) I think he would have to transfer a balance at the time of applying for a new card. I think its a good idea though if he can do it his way. There is a 2.99 fee to pay, but he's happy with that. He'll have 60 days from opening his new Barclays credit card to transfer a balance and stay interest free on the amount transferred in. He'll have to pay the minimum payment each month of course, but no interest for the 34 months. Quote Link to comment Share on other sites More sharing options...
lexikia Posted October 13, 2014 Report Share Posted October 13, 2014 Halifax given 28 months interest free and up to 3 months to transfer balance, only 1.5% fee Quote Link to comment Share on other sites More sharing options...
TIGHTCHOKE Posted October 13, 2014 Report Share Posted October 13, 2014 Surely a loan would be cheaper, I think it's 4.1% at Nationwide at the moment! Quote Link to comment Share on other sites More sharing options...
Piebob Posted October 13, 2014 Report Share Posted October 13, 2014 Surely a loan would be cheaper, I think it's 4.1% at Nationwide at the moment! No, he'd pay just shy of £60 for a £950 loan over 34 months versus £28 or so for the credit card transfer. (I think) Quote Link to comment Share on other sites More sharing options...
Davyo Posted October 13, 2014 Report Share Posted October 13, 2014 He should avoid a credit card, but if he is desperate,and needs to buy it on his existing card,lets hope he gets accepted on the new card . Secondly assuming nothing happens financially in his circumstances during this 0% interest period and he manages to pay it off all well and good.I personaly would never have a credit card. Quote Link to comment Share on other sites More sharing options...
Rupert Posted October 13, 2014 Report Share Posted October 13, 2014 Its the way forward if YOU CAN MANAGE YOUR MONEY and ITS NOT THE ONLY MONEY YOU HAVE,bought all sorts like this,Keep my own money at hand and use the banks on the cheap. Quote Link to comment Share on other sites More sharing options...
TIGHTCHOKE Posted October 13, 2014 Report Share Posted October 13, 2014 Surely it would work out at £82.42 per month for 12 months on the loan and end up paying a total of £988.95 Quote Link to comment Share on other sites More sharing options...
Brooksy789 Posted October 13, 2014 Report Share Posted October 13, 2014 Credit cards are good for credit ratings and if you keep the payments off shouldn't really go against you for any reason. I got a £4k loan for my car and got it through Zopa. Would highley reccomend them as you borrow money off other lenders (People) so you cut the bank out which means lower interest rates! Ive borrowed the £4k over 4 years and belive i pay back about £4600 in total which is fantastic! i think if i went through a bank i wouldve ended up paying back around £5400 in total so you can see the difference straight away. If you have spare cash you can always lend through Zopa as well, not only will you see returns (if not a slow return) in your lent money you will also help people out like myself who need the money for whatever reason. Great all around if you ask me, **** the banks lol Quote Link to comment Share on other sites More sharing options...
steve_b_wales Posted October 13, 2014 Author Report Share Posted October 13, 2014 Its the way forward if YOU CAN MANAGE YOUR MONEY and ITS NOT THE ONLY MONEY YOU HAVE,bought all sorts like this,Keep my own money at hand and use the banks on the cheap. This is what he is going to do. He says that he has the 'cash' to buy the bike outright, but by getting the card with the 0% interest offer, he can keep his money in the bank. There is the fee to pay of course, but he reckons its worth it. I too, don't like credit cards. but they can work for you IF you use them correctly. My cousin, who is not short of a bob or two, pays for all her shopping etc on her cards, but always pays the balance before interest is added. She gets cash back on one of the cards, and I think air miles on the other one. I have a card that's just for an emergency. Quote Link to comment Share on other sites More sharing options...
TIGHTCHOKE Posted October 13, 2014 Report Share Posted October 13, 2014 Credit cards are good for credit ratings and if you keep the payments off shouldn't really go against you for any reason. I got a £4k loan for my car and got it through Zopa. Would highley reccomend them as you borrow money off other lenders (People) so you cut the bank out which means lower interest rates! Ive borrowed the £4k over 4 years and belive i pay back about £4600 in total which is fantastic! i think if i went through a bank i wouldve ended up paying back around £5400 in total so you can see the difference straight away. If you have spare cash you can always lend through Zopa as well, not only will you see returns (if not a slow return) in your lent money you will also help people out like myself who need the money for whatever reason. Great all around if you ask me, **** the banks lol You only believe that figure, do you now know for sure? Quote Link to comment Share on other sites More sharing options...
Brooksy789 Posted October 13, 2014 Report Share Posted October 13, 2014 You only believe that figure, do you now know for sure? Yeh, i can log on to my Zopa account and it shows how much i've borrowed, how much i paying back in total and how much i've payed back so far. It also shows you a break down of who's lent what and how much they have lent and also how much of that i've paid the person back. Each monthly payment i make gets split between about 80% of the lenders untill all lenders have their money back over the four years. I think if i remeber correctly i have about 96 lenders who have lent anywhere from £10 to £100 each. Their money gets put in a pot and Zopa distribute it out to borrowers hence why i have so many lenders of smaller amounts rarther than a few lenders of larger amounts. Quote Link to comment Share on other sites More sharing options...
Brooksy789 Posted October 13, 2014 Report Share Posted October 13, 2014 (edited) There you go take a look for yourself http://www.zopa.com/loans Just did £4k over 4 years and this is what it says (sorry can't do screen shot im at work) A loan of £4,000 over 4 years will cost you £96.23 per month. The APR is 7.5%. The total cost after 4 years is £4,619.19, which includes £579.19 interest at 6.9% fixed and a £40.00 fee. The total amount of credit is £4,040.00. This is a representative example. Edited October 13, 2014 by Brooksy789 Quote Link to comment Share on other sites More sharing options...
Rupert Posted October 13, 2014 Report Share Posted October 13, 2014 he could skip a step and save the fee by getting an interest free purchase card. Quote Link to comment Share on other sites More sharing options...
lister22 Posted October 13, 2014 Report Share Posted October 13, 2014 ask your Dad for 0% like my lads do Quote Link to comment Share on other sites More sharing options...
Alex C Posted October 13, 2014 Report Share Posted October 13, 2014 Sorry but he cant borrow £950 for 4%. More like 17 - 20 % from the banks and around 12% from most other lenders. Thats the real world figures not the offers to tempt you in. Borrow larger sums and the rate drops a bit but under 10K and you will get stuffed. I just put 5 k on a barclay card, Kitchen appliances and granite worktops for a new kitchen, which was 0% for purchases for 18 months, There was no cheaper way for me to borrow a small amount over a short duration. Even Martin Lewis agreed !! Quote Link to comment Share on other sites More sharing options...
bruno22rf Posted October 13, 2014 Report Share Posted October 13, 2014 We had "revolving credit" type loans from various stores a few years ago and eventually used the 0% balance transfer as a way of paying them off-saved us a fortune in ineterst . Quote Link to comment Share on other sites More sharing options...
Fisheruk Posted October 13, 2014 Report Share Posted October 13, 2014 No, he'd pay just shy of £60 for a £950 loan over 34 months versus £28 or so for the credit card transfer. (I think) A lot of faff for £30 or so. Quote Link to comment Share on other sites More sharing options...
Passionforangling Posted October 13, 2014 Report Share Posted October 13, 2014 "In work last night, my mate was talking about buying himself a motorbike. He's seen one for £950. " If your mate waits until the end of the week and all this rain that is forecast he could probably knock the price down by £50. Dealers find it harder to shift bikes when the weather closes in Quote Link to comment Share on other sites More sharing options...
fruity Posted October 13, 2014 Report Share Posted October 13, 2014 Why lend it and make someone else wealthy, save up and then buy it Quote Link to comment Share on other sites More sharing options...
Davyo Posted October 13, 2014 Report Share Posted October 13, 2014 (edited) Likely hood is that if he's only paying £950 for a bike it has a good chance of being a money pit & does that get added on to the credit card and the gradually spiral out of control?These card companies know exactly what they are doing,hopeing you max it out and then when you can't clear it off reap thd rewards of you just making the minimum payment every month. Edited October 13, 2014 by Davyo Quote Link to comment Share on other sites More sharing options...
Piebob Posted October 15, 2014 Report Share Posted October 15, 2014 Surely it would work out at £82.42 per month for 12 months on the loan and end up paying a total of £988.95 Yes, but it's 34 months to do a like for like comparison. Quote Link to comment Share on other sites More sharing options...
Mungler Posted October 15, 2014 Report Share Posted October 15, 2014 The new card / balance transfer gig will cripple a credit rating and Experion / Equifax hate it. Quote Link to comment Share on other sites More sharing options...
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