I1L2T3 Posted October 5, 2011 Share Posted October 5, 2011 Cash is for mugs anyway, you're always better off using 0% finance if available (or if you can negotiate it into the deal) - let someone else service the interest, while you let your own capital make babies e.g. flight reservations and holidays. Some questions, hopefully not daft ones. If you get 0% finance aren't you effectively taking out a store card? Even if it's a straight credit agreement it's still going to go on your credit record? And if your credit report is festooned with credit agreements it could start looking bad? I'm with you on the credit card though. Any big purchases (over £100) I stick on the card and pay it off the next month. Using the card enhances your level of protection it seems. Personally I'd rather use the credit card and not build up my credit report with too many searches and accounts. Link to comment Share on other sites More sharing options...
speedbirdone Posted October 5, 2011 Share Posted October 5, 2011 Some questions, hopefully not daft ones. If you get 0% finance aren't you effectively taking out a store card? No alot of credit cards offer 0% on purchases for X amount of months, so you are getting an interest free loan, although only short term, usually 3 to 6 months as long as you pay the balance off by the end of the interest free period. I personally use a AMEX charge card, which has no preset spending limit but does require me to pay the balance off at the end of each month but i prefer it that way anyway Even if it's a straight credit agreement it's still going to go on your credit record? And if your credit report is festooned with credit agreements it could start looking bad? Not 100% sure how a credit score works but i guess as long as your not skipping payments or keep applying for credit after already been turned down, swapping from one card to another shouldn't be such a problem. Although maybe someone with better knowledge could answer that question I'm with you on the credit card though. Any big purchases (over £100) I stick on the card and pay it off the next month. Using the card enhances your level of protection it seems. As i said in a earlier post there are many times when useing a credit / charge charge is the sensible thing to do if you have access to one Personally I'd rather use the credit card and not build up my credit report with too many searches and accounts. ............................................... Link to comment Share on other sites More sharing options...
Tony Posted October 5, 2011 Share Posted October 5, 2011 So let me get this straight, pretty much everyone on this thread blames banks for all the financial ills of the world but they can't imagine life without their products. Then there's a few of us saying that it isn't the banks who are primarily to blame and that people should take responsibility for themselves. Food for thought. Link to comment Share on other sites More sharing options...
wednesday1 Posted October 5, 2011 Share Posted October 5, 2011 So let me get this straight, pretty much everyone on this thread blames banks for all the financial ills of the world but they can't imagine life without their products. Then there's a few of us saying that it isn't the banks who are primarily to blame and that people should take responsibility for themselves. Food for thought. Food for the brain-dead perhaps. What about responsible lending??? Without wishing to sound patronising some people just can't say no to the temptations of easy credit. Even now you see loads of ad's about offering easy to get instant loans etc whilst the banks will not lend businesses money to expand, thus prolonging the recession. Link to comment Share on other sites More sharing options...
I1L2T3 Posted October 5, 2011 Share Posted October 5, 2011 So let me get this straight, pretty much everyone on this thread blames banks for all the financial ills of the world but they can't imagine life without their products. Then there's a few of us saying that it isn't the banks who are primarily to blame and that people should take responsibility for themselves. Food for thought. I could live without the credit card quite easily. It's just convenient. I'm not one of their greatest customers I guess - I never pay any interest because the balance is cleared every month. I'm lucky that I earn and accumulated enough never to have to worry about buying what I want. Always a saver, never a spender. Link to comment Share on other sites More sharing options...
L00b Posted October 5, 2011 Share Posted October 5, 2011 Some questions, hopefully not daft ones. If you get 0% finance aren't you effectively taking out a store card? Not necessarily. Could be a credit agreement. And many store cards work exactly like CCs anyway: miss a payment and interest springs up from the small print and soon adds up Even if it's a straight credit agreement it's still going to go on your credit record?Yes. And if your credit report is festooned with credit agreements it could start looking bad?Not necessarily. If you've never defaulted, been late or have any kind of blemish, however minor, it only makes your credit rating better. I'll always remember going out to buy some 3-piece suites in IKEA in 2008, literally within days from moving back to the UK after 4 years away (and little banking to speak of in the UK during that time). Got 0% sorted within 15 minutes, even though I wasn't yet on the electoral roll, didn't have my first payslip or any utilities bill or the like. But then, a mortage fully paid up 4 years prior, and not ever any payment default or blemish, still counts for something, I guess I like 0% (when the financed price is right, of course...it wouldn't do to pay over the odds, i.e. a '0% price inflated by 15% APR front-loaded' ). Means the retailer is so desperate to shift stock, he's borrowing from the bank and paying the interest, and letting me have the capital for free for <credit period> All that said - I never, ever borrow more than I couldn't afford to buy outright with cash. In fact, I only ever use credit if it is 0% and you're talking 'loud stuff' (settees, car, etc.). Link to comment Share on other sites More sharing options...
I1L2T3 Posted October 5, 2011 Share Posted October 5, 2011 Food for the brain-dead perhaps. What about responsible lending??? Without wishing to sound patronising some people just can't say no to the temptations of easy credit. Even now you see loads of ad's about offering easy to get instant loans etc whilst the banks will not lend businesses money to expand, thus prolonging the recession. Wonga.com - part-sponsers of the LibDem conference. Food for thought! Link to comment Share on other sites More sharing options...
L00b Posted October 5, 2011 Share Posted October 5, 2011 I have a AMEX Platinum Membership Rewards charge card ( not to be confused with the AMEX Platinum credit card ) OK it costs me a £300 a year membership fee. Some may say you pay £300 a year for the card but believe me the benefits of that card far outweigh the £300 it costs me, plus i also have bog standard Mastercard which i have because not everywhere accepts AMEX.Interesting, as the card I refer to in my earlier post is a bog-standard Mastercard. On my French account with my French bank. The benefits I highlighted (travel insurance etc., there's way more but these are the more obvious ones) and the card cost me the princely sum of €10 per annum. Banking in several countries (for many, many years) really opens your eyes about how fleeced UK customers have been. For donkey's years. Link to comment Share on other sites More sharing options...
I1L2T3 Posted October 5, 2011 Share Posted October 5, 2011 Not necessarily. Could be a credit agreement. And many store cards work exactly like CCs anyway: miss a payment and interest springs up from the small print and soon adds up Yes. Not necessarily. If you've never defaulted, been late or have any kind of blemish, however minor, it only makes your credit rating better. I'll always remember going out to buy some 3-piece suites in IKEA in 2008, literally within days from moving back to the UK after 4 years away (and little banking to speak of in the UK during that time). Got 0% sorted within 15 minutes, even though I wasn't yet on the electoral roll, didn't have my first payslip or any utilities bill or the like. I like 0% (when the financed price is right, of course...it wouldn't do to pay over the odds, i.e. a '0% price inflated by 15% APR front-loaded' ). Means the retailer is so desperate to shift stock, he's borrowing from the bank and paying the interest, and letting me have the capital for free for <credit period> Ok, thanks for the answers. And speedbirdone too. Link to comment Share on other sites More sharing options...
Tony Posted October 5, 2011 Share Posted October 5, 2011 Food for the brain-dead perhaps. What about responsible lending??? Without wishing to sound patronising some people just can't say no to the temptations of easy credit. Even now you see loads of ad's about offering easy to get instant loans etc whilst the banks will not lend businesses money to expand, thus prolonging the recession. Ah yes, we remember - they "saved the world" by completely cocking up the rescue and screwing us all over for the next 5-10 years. How about talking about responsible borrowing instead of responsible lending? Imagine if previous Chancellors and PM's had thought about responsible borrowing eh? Brain dead? Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.