0pc finance on watch
Discussion
I am thinking about buying a new watch as a bit of a treat for myself.
I've found a very good deal on a watch - 800 quid, retails at 1300 quid, would expect to get it for about 900 if paying cash under normal circumstances.
I can put down 10pc and then finance it over 3 years - comes in at something like 21 quid a month, which is basically free, and is obviously the way forward as I wont notice this going out.
the question is, when we come to remortgage/move in 3 years time and the lender does a search on me and see "Hitachi Finance" or whatever in big letters on my credit file, I assume they wont think I'm sub prime or something ? (in much the same way as they probably do with wonga.com or quick quid!)
before anyone says - why dont you buy in cash - I wont get any further discount on this watch and would prefer to finance if possible - 20 quid a month is nothing in my man maths.
ta
I've found a very good deal on a watch - 800 quid, retails at 1300 quid, would expect to get it for about 900 if paying cash under normal circumstances.
I can put down 10pc and then finance it over 3 years - comes in at something like 21 quid a month, which is basically free, and is obviously the way forward as I wont notice this going out.
the question is, when we come to remortgage/move in 3 years time and the lender does a search on me and see "Hitachi Finance" or whatever in big letters on my credit file, I assume they wont think I'm sub prime or something ? (in much the same way as they probably do with wonga.com or quick quid!)
before anyone says - why dont you buy in cash - I wont get any further discount on this watch and would prefer to finance if possible - 20 quid a month is nothing in my man maths.
ta
In some cases it might actually help? The computer will look at regular payments being made on time compared to someone who is 100% cash and then looks to get credit. It won't be distinguishing why company it is with, the overheads of tracking that would be massive so no one bothers.
I knew someone who had a problem getting finance as their folks got their phone ( I have no idea why ) and the never used loans or credit cards so when they wanted credit they had 0 previous and that actually counted against them!
I knew someone who had a problem getting finance as their folks got their phone ( I have no idea why ) and the never used loans or credit cards so when they wanted credit they had 0 previous and that actually counted against them!
got the figures slightly off but its still a very good deal - I got the last one too as it just went out of stock!
http://www.beaverbrooks.co.uk/product/13268/tag-he...
http://www.beaverbrooks.co.uk/product/13268/tag-he...
BluePurpleRed said:
I knew someone who had a problem getting finance as their folks got their phone ( I have no idea why ) and the never used loans or credit cards so when they wanted credit they had 0 previous and that actually counted against them!
^ This is true.I currently have a client who earns £100k, has a 20% deposit and wants to buy a property. He's lived at his address for seven years but has NO credit commitments whatsoever. Even his mobile is in his employers name. He has his bank account registered at his parents address. Therefore, he has ZERO traceability at his current address and not track record of maintaining credit agreements. The result; lender declined the application..........
Sarnie said:
^ This is true.
I currently have a client who earns £100k, has a 20% deposit and wants to buy a property. He's lived at his address for seven years but has NO credit commitments whatsoever. Even his mobile is in his employers name. He has his bank account registered at his parents address. Therefore, he has ZERO traceability at his current address and not track record of maintaining credit agreements. The result; lender declined the application..........
oh dont worry about that. I have plenty of creditors! I currently have a client who earns £100k, has a 20% deposit and wants to buy a property. He's lived at his address for seven years but has NO credit commitments whatsoever. Even his mobile is in his employers name. He has his bank account registered at his parents address. Therefore, he has ZERO traceability at his current address and not track record of maintaining credit agreements. The result; lender declined the application..........
It will show up as an unsecured loan on your credit file just like if you got a loan from a bank. Your credit file does not show 'which' leander it is, just simply the 'type' of finance.
Payday loans like Wonga.com, quickquid show up as payday loans on your credit file as they're a different type of finance, which can look bad on your file so IMO never get one.
If you can afford to buy it outright, just buy it. If you want to build your credit rating, take out the loan, then pay the loan off early in a couple of months. If you do get the loan make sure you make EVERY payment on time, as you will be charged for missing one (bounced Direct Debit charge is £22 per occurance with Hitachi Capital).
But PH answer, don't buy a flash watch, put it towards car!
Source: I work in the industry
Payday loans like Wonga.com, quickquid show up as payday loans on your credit file as they're a different type of finance, which can look bad on your file so IMO never get one.
If you can afford to buy it outright, just buy it. If you want to build your credit rating, take out the loan, then pay the loan off early in a couple of months. If you do get the loan make sure you make EVERY payment on time, as you will be charged for missing one (bounced Direct Debit charge is £22 per occurance with Hitachi Capital).
But PH answer, don't buy a flash watch, put it towards car!
Source: I work in the industry
Sarnie said:
nosittap said:
Your credit file does not show 'which' leander it is,
Yes it does.I work in risk, have access to experian, equifax and call credit and names of creditors are NOT visible on our credit reports.
I purchased my watch on an 18 month finance scheme with Hitachi Finance - 0% APR etc.
I did a before and after check on my credit report and it had marginally improved it (mines ok anyway due to me keeping various low/zero APR loans on the go and making every repayment on time).
I did a fair bit of research years ago to see how to maximise my score/rating when I first took out a credit card. As mentioned above, not having regular credit counts against you.
I did a before and after check on my credit report and it had marginally improved it (mines ok anyway due to me keeping various low/zero APR loans on the go and making every repayment on time).
I did a fair bit of research years ago to see how to maximise my score/rating when I first took out a credit card. As mentioned above, not having regular credit counts against you.
Edited by Charlie Michael on Wednesday 18th July 16:04
nosittap said:
If you go on experian and check your personal credit report YOURSELF it will show lenders/creditors. However this information is different to what creditors see when running a credit report.
I work in risk, have access to experian, equifax and call credit and names of creditors are NOT visible on our credit reports.
Why then are some mortgage companies refusing to lend to people who have taken out loans with Wonga.com et al?I work in risk, have access to experian, equifax and call credit and names of creditors are NOT visible on our credit reports.
They must be able to see - surely?
I financed a watch on 0% because there was no movement at all on me paying cash so thought it can earn me a bit of money sticking it the cash in my ISA and servicing the loan. It was a tad bit more for the monthly payments than your amount and I still got a mortgage. It was due to end a few months into my mortage though which may have been a deciding factor.
Personally I'd probably by it there and then. Man maths for me would see me adding on serveal other "nothing" amounts elsewhere. I'm currently looking at my outgoings now and I constantly forget some of the smaller amounts like house insurance and gym membership.
Personally I'd probably by it there and then. Man maths for me would see me adding on serveal other "nothing" amounts elsewhere. I'm currently looking at my outgoings now and I constantly forget some of the smaller amounts like house insurance and gym membership.
Miguel Alvarez said:
I financed a watch on 0% because there was no movement at all on me paying cash so thought it can earn me a bit of money sticking it the cash in my ISA and servicing the loan. It was a tad bit more for the monthly payments than your amount and I still got a mortgage. It was due to end a few months into my mortage though which may have been a deciding factor.
Personally I'd probably by it there and then. Man maths for me would see me adding on serveal other "nothing" amounts elsewhere. I'm currently looking at my outgoings now and I constantly forget some of the smaller amounts like house insurance and gym membership.
I've already got a mortgage - the question was would a lender (if we purchased somewhere else or remortgaged) view Hitachi finance on my credit view as a sort of sub prime feature. the answer, it seems, is no. Personally I'd probably by it there and then. Man maths for me would see me adding on serveal other "nothing" amounts elsewhere. I'm currently looking at my outgoings now and I constantly forget some of the smaller amounts like house insurance and gym membership.
raptor600 said:
Why then are some mortgage companies refusing to lend to people who have taken out loans with Wonga.com et al?
They must be able to see - surely?
Part of the mortgage application process includes a certain number of months of your bank statements. They'd be able to tell from these.They must be able to see - surely?
Yeah, why not.
I bought a £600 computer from Overclockers on Hitachi finance.
It was dead easy, you can access the finance agreement online and pay it off/ make over payments.
I paid mine off in 4 months and thus uncured no interest.
I think overall amount payable was a bit higher maybe £25 higher than cash due to an admin charge for arranging the finance.
I didn't mind this as I liked the flexibility of paying over a few months.
ETA, this was a buy now pay later (12 months) deal whereby if you don't pay after 12 months you move onto a mega interest rate which doubles the amount payable.
I bought a £600 computer from Overclockers on Hitachi finance.
It was dead easy, you can access the finance agreement online and pay it off/ make over payments.
I paid mine off in 4 months and thus uncured no interest.
I think overall amount payable was a bit higher maybe £25 higher than cash due to an admin charge for arranging the finance.
I didn't mind this as I liked the flexibility of paying over a few months.
ETA, this was a buy now pay later (12 months) deal whereby if you don't pay after 12 months you move onto a mega interest rate which doubles the amount payable.
Edited by HBFS on Friday 20th July 19:58
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