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.

I paid it just after the default was added. I did at the time ask for it to be removed when I finally paid off the over draft. But they said I couldn't take off the default. Maybe I should have fought harder.

You don't pick the credit card limit the credit card company does.

id do credit card because there’s lots out there that do 0% interest for 12/18 months so gives you some time to pay it off with no interest

Just a couple of points,
First, how much a month do you have spare for repayments? and second, what is your credit history like? Actual offers on credit cards to someone who has a limited or poor history are likely to give a low credit limit until you build up a history of managing the account. - You could have a 500/1000 limit at start.

I wouldnt get swept up with what the credit score number is, in america its important, here its just an rough indicator and each lender will have its own method for credit scoring and if theres not enough information on your record you can easily end up reporting a false high score.

At 18 years old I checked mine, it told me 999, which is clearly ridiculous.

Thank you. We are going to go for the 0 interest free credit card for the longest duration.

Your question was relevant for context but I was just wondering about the way you phrased it. Thanks for explaining.

If your looking at 0% CC's - Ive recently taken out a Barclaycard platinum out,with 30Mths 0% and a £10,900 limit, youll breeze it with your credit score.

What about PayPal credit? You get 0% for four months

I paid it just after the default was added. I did at the time ask for it to be removed when I finally paid off the over draft. But they said I couldn't take off the default. Maybe I should have fought harder

Defaults can only be removed if they were applied in error. Paying the debt after it's defaulted doesn't remove the default, it still stays in place for 6 years.

You said CCJ though op. Often that's a pretty long process AFTER default stage with plenty of chances and notice to pay first.

@MillieVonPinkle

Sorry. It wasn't a CCJ. I had a default added to my account. I don't know why I said CCJ. I was mixing up the two.

@secular37 is this the first time you will be living alone, paying your own bills etc? X

I've always paid bills. But yes living on my own.

Okay @secular37 but if this is your first time living alone will this be your first time paying rent/mortgage, gas and electric, water, wifi etc bills all on your own? The only reason I ask is because if that is the case, I’d be very wary of adding a £3000 loan/credit to pay off within 12 months to your plate.

If you’ve never had to pay all of those bills before then you don’t truly know how your finances will be once you’re moved in, it would be sensible to move in and have a few months of bills etc under your belt first, then you will have a better gauge of if you have £250 extra spare to fund your loan/credit.

I agree. Which is why a two grand credit seems to be more doable with a long interest free rate. The rent was split, which helped, but I paid for the gas.electric, water and wifi fully on my own. But I will move in first, wait a couple of months and see how much I can afford once all rent/phone bill and everything is paid before adding more debts on my head.

I think that would be the best idea, just remember to find out what the minimum monthly payment would be before you commit. Even on a longer term no interest credit card there is a minimum monthly payment you have to make, and with £2000 on the card that could still be £100 depending on the provider you go with. Make sure you can absolutely afford those payments before you commit x

Save up and do it bit by bit. Don't get into debt if you don't have to.

Will you get £3000 on a credit card if you haven't had one before? My DD was only offered £500 credit limit initially on her first card. Loans might be tricky too if you have no clean credit record.