Can I get a credit card and a bank loan?

[graciefielder]

I'm looking to get some work done on the house and although I have some savings, I'm going to need a bit of credit in the short term.

I'm planning to get a personal loan for about 20k and then I think I'd like a 0% credit card for some smaller purchases.

I've not really ever bought anything on credit before. I do have a mortgage and a credit card that I use very occasionally and pay off immediately just to keep my credit rating up (I heard that was a thing to do, dunno if it's true!)

My question is: am I likely to be able to apply for a bank loan and credit card at the same time or will that ring some kind of alarm bells somewhere? And which should I apply for first? I don't want one to jeopardise the other.

Bumping this.

Anyone work in banking and know how it works?

That's a massive personal loan. Could you add it to your mortgage instead?

@rainbowandglitter I could, but that would mean paying back over 25 years and so paying way more in total. I only want it for 4 or 5 years so it'll cost me less.

Go onto that martins money tips website. Hes always got good advice.

It’ll depend on two things.

Firstly affordability - whichever one you go for first will be easier to get, but the second will have to take into account the first - so either the £20k loan or the credit card limit. There’s a chance that the second one will be declined as they won’t consider both as affordable.

And secondly, whether applying for two lots of credit close together will set off alarm bells. It does, sometimes. It might be more likely to do so if you’ve just got a mortgage, etc.

@rainbowandglitter can I ask why you suggest that though? Is there some reason why it's better to add to mortgage than take a loan? Interest rates aren't that different.

Adding to mortgage

Sorry fat fingers.

Adding to mortgage will depend on a lot of factors, either look at making the personal loan slightly bigger? Or use your existing credit card? You might even have a 0% or low interest rate offer you could take advantage of. Don't forget to add contingency to the quoted costs, especially these days and then also factor in your own stress tests, i.e. job loss, illness or injury, saleability of home (worst case), does it all need to be in one go, so if an extension, could you get it to exterior finished stage and then reassess before doing the internal and final fix stages (which can be just as expensive) ok not ideal but just gives you a bail out option at that stage whilst your finances recover etc

Apply for the one that you need the most first. Or instead of doing online, make an appointment at your bank and look to do both at the same time? I work in a high street bank and regularly have customers coming in applying for both forms of credit at the same time that both get accepted. Aslong as you have the income in the background to support your lending and a clear credit file I would doubt there would be issues.

well, in general, 20,000 is not such a big amount. I think that you should just contact the bank and they will tell you what to do. personally, when I was planning to take out a loan and immediately issue a credit card, my friend from navibanker.com he advised me to get a credit card first so that the bank would not refuse to do these two operations at once. we decided that it would be more reliable. In general, all issues related to loans are quite difficult, sometimes it is not always clear what needs to be done correctly in order not to be refused. but specifically in your case, I don't think there will be problems.