Loan or credit card?!! DESPERATE

[secular37]

Please please Mumsnetters. I am desperate for advice. If this post is not suitable on here then please direct me to another thread to post this question on.

After 6 long years, my CCJ has been removed (got a student over draft when I was 18 at Uni and paid it off but was put on ccj due to failure to many attempts of them trying to get me to pay it back).

It is good timing, as I am moving home soon. But I need some advice. Due to my Children's needs, it looks like flooring is going to be our biggest expensive. Roughly 3,000 for sound proofing and flooring.

I don't know if it's worth getting a loan or a credit card (never had a credit card as I hate getting into debt) to buy the flooring. My credit score is 928. Please tell me what I should do. Please!!!!!!!!!!! As I need to live out ASAP and will not do this until I've got my flooring sorted.

Thanks @Dibbydoos.

Should I pick a 0%interest free card that gives me the longest length of time to pay it back interest free! I can see one offered to me at 20 months but I'm a bit concerned as I may be tempted to purchase more items or delay paying it back.

What do you mean delay paying it back? You still have to pay it every month.

If you (obviously) don't trust yourself to have some self restraint. Then maybe do your floors a bit at a time and not get into debt.

Depending what type of flooring you need, carpet right do 0% finance. That way you only borrow exactly what you need and have fixed repayments, rather than a card where you may have extra borrowing power and minimum payments that could get you into more debt

https://www.carpetright.co.uk/useful-links/interest-free-credit/

I hope my thread didn't make people feel a type of way. I am a very humble person and keep certain things private. The reason why I stated my salary and my credit score was to receive the best advice on here due to my circumstances. I repeat that my account was on default for 6 years!!! During the time, I had difficulties securing any type of credit card or loan and instead had to scrimp, wait or save, or go without food- whilst paying for my children's medical fees- to buy certain things.

I also want the flooring for soundproofing. Which many carpet companies don't do. I will need to get these online ...

@gamerchick

I believe I am. But I just feel 20 months is too long to pay things back- plus my financial situation may change over the course of two years. Whereas 12 months will be fine. Maybe 3 grand is too much to get. 2,000 seems doable to start off with and then I can get the carpet for each room bit by bit.

Should I pick a 0%interest free card that gives me the longest length of time to pay it back interest free! I can see one offered to me at 20 months but I'm a bit concerned as I may be tempted to purchase more items or delay paying it back.

Only a get a 0% credit card if you will be disciplined enough to fully pay it off before the end of the period. If you think you will be tempted to spend on it or not pay it off you are better off getting a loan which has fixed monthly payments until it's gone

Thanks mumsnet!

You just never know these days!

@BooBooBaloo

I will definitely be disciplined enough but 20 months is too long. Would 12 months be feasible?

Surprised this would be reported. People always chat about money/income on MN!

I think you should focus on carpeting for living area/kids bedrooms first on 0%.

Lots of people give away rugs on free cycle type sites which can temporarily help. If not, a large soft rug wouldn't cost much.

It's just 20 months with no interest. Gives you more time to pay it off. There's nothing stopping you paying your card off as quick as you want. If you want interest to kick in at 12 months then that's up to you.

Sounds like you would be better off with a loan if you're not sure how credit cards work though.

If you are sure you can be disciplined then, in your situation, I would get a 20 month interet free credit card. Then set up a Direct Debit to pay say £200 every month and then make an additional payment whenever you can spare it. Just because it's 20 month doesn't mean that you have to take 20months to repay it.

That way, if you had an unexpected bill one month you could reduce the DD for that month and then put it up again.

Plus, if you are managing to pay it back more quickly you could add on the extra that you need.
EG, spend 2 thousand on it initially, your DD is £200 and month 1 you can afford to pay an extra £100 (first month in property is likely to be expensive. Month 2, you get a bonus so in addition to the £200 you manage an extra £400. Maybe by month 6 or 8 or 10 you have paid most of it off. You can then spend another £1000 on the rest of the flooring and continue paying it off the same way.

As soon as you have covered all the payments you cut up your credit card.

0% interest credit card with a reasonable time limit (in case things happen out of your control). You can pay as much back as you can each month. Once you’ve purchased the flooring cut the credit card up to prevent further spending.

No idea as I don't know how much you can afford!

You were black listed and you have a credit score of 928.

I've never been blacklisted

Your credit score is Excellent - 659/ 710, and my experian is 999

What is this poster getting at? 🤔

@AsWrittenBy

During that time my account was in default.I have paid every single bill on time.

Is default and black listed the same thing? My account was put in default which stays on your credit report for 6 years. It has just been removed from my credit report this month.

That makes no sense. The longer the better, surely, to give you room for error- just overpay or put the money aside if you can afford to do it over a shorter period of time. Don't be beholden to the CC company- take control.

Unexpected things happen, yes, but trust yourself that you have a goal and you're going to see it through. Emergencies/unexpected expenses are obviously something different. If you're renting then this is less likely to be an issue.

Thank you @NannyGythaOgg :)

Just to confirm.

Do you think it would be better to get 2,000 initially on credit (rather than 3 grand?).

If its for carpets and flooring neither, just get the 0% interest deal in the shop. Credit agreement with them. But you won't be able to move it if you can't pay it off so either spread it over longer than you need or use a cc so you can move it around if you don't end up paying it.

Also I don't really understand your first post, if you paid back the overdraft why was it a default? That means you didn't pay it? You should fight these things if it was an error, not now as it's not on the record anymore but in future.

If your children have medical needs make sure you are claiming dla as it’s non means tested and will help you out financially. You don’t need a diagnosis to claim, just that they have more care needs than an average child of the same age - and it sounds like they do. On a wage of £33k with a disabled child on dla you should be entitled to the disability element of universal credit. I know this isn’t directly what you’re asking but it would all help your situation. There are lots of Facebook groups with 50k plus members about how to claim / access dla if you just search the groups page for dla.

@PerfectYear321 what was I 'getting at'?

Well I asked first if it was social housing....was ignored

Was trying to find out as she MAY be able to get a grant but was ignored so didn't suggest it!

Mortgage....could you ask current owners to leave existing flooring

Private rented... then provide own?

I swayed towards the store credit but because we want the money to go towards sound proofing, I think I may go for the CC 0%interest free.