0% Credit card for part payment (car) - good idea or not

[Whitewater]

Some 0% credit cards only allow balance transfers from other credit cards

 

[radderfire]

I basically put all of my spending through my credit card, get the rewards, and pay it in full, the added protection is the icing on the cake.

The credit card companies will hate customers like me.

No they won't because they take transaction fees from the merchant on every purchase.

 

[kitkat9933]

Credit cards are good things if used properly which for the most part is not using it as a way to extend yourself further financially than you can afford.

Using one can give you free money for cash back or point style cards, 0% cards to defer payments for free to help money flow better or just cash in on the interest, protection on purchases, as well as help to keep up reliable payment history to help improve your lendability when needed.

For the car, you should always pay the deposit via credit card for the added protection if not also any of the other benefits they can provide.

Everyone should use them in some shape or form.

 

[kitkat9933]

No they won't because they take transaction fees from the merchant on every purchase.

Exactly. This is why some merchants hate them or just don’t take them.

They offer customers incentives for every type of person.

 

[413x]

Some 0% credit cards only allow balance transfers from other credit cards

Those would be balance transfer offer CCs.

You just have to flip the filter to purchases.

BT offer CCs are much more common than Purchase. Because they usually come with a 3.5pc fee. But I've seen one 0pc fee card around. First time in ages.

 

[Rroff]

As mentioned it isn't unusual with garages and dealers for them to not want to take CC payment, some will if pushed, others flat out won't.

 

[radderfire]

Hi all,

Maybe looking to sign up for a credit card (not had one in many many years) as generally I dont need them.

In general, I would say if you can avoid having a credit card, then do. Life is better when you don't owe anyone money. If you're doing it because you need the £2k, then just buy a £2k cheaper car, or wait until you've saved £2k. Avoid borrowing money whenever and wherever possible.

 

[Raymond Lin]

If they take VISA debit surely they will take VISA credit?

And if they are worried about the fees, they put £100 on credit (asking to put £1 on it just seems weird), and then put the balance on Debit. Then the fees they are paying on credit would be in the pence, not quid.

 

[robfosters]

Forget the money transfer option. Money transfer is not covered by section 75

 

[DJMK4]

In general, I would say if you can avoid having a credit card, then do. Life is better when you don't owe anyone money. If you're doing it because you need the £2k, then just buy a £2k cheaper car, or wait until you've saved £2k. Avoid borrowing money whenever and wherever possible.

I dont need to save, although I am saving monthly, i have quite a bit of savings behind me




And yes correct, i have not used a credit card in years

because i want to put some of it on the card and pay it off, spread the cost over 3-6 months

I am going to use money from savings. But that said, my savings are earning interest at the moment

 

[radderfire]

I dont need to save, although I am saving monthly, i have quite a bit of savings behind me

If it's only £2k then you aren't going to be making a lot of money by using a 0% deal. Personally I would just avoid the credit card on principle and put the effort needed to investigate that into finding a better car / car deal instead. I think if you are a cash buyer it can put you in a strong negotiating position.

Although I have two credit cards (always paid off immediately), I am not a fan of credit cards, or finance in general, as you might be able to tell. I might get rid of mine one day, but I just use them to have a backup payment option if something happens to my debit card. 0% deals are just marketing, and avoiding any credit card use is a good life choice.

 

[Noxia]

I use a credit card for all payments where I can. There are simply no advantages for me using a debit card.
I can't help but feel people who are so vehemently against them are projecting financial problems they may have got into themselves in the past. There's absolutely nothing wrong with using them to spend money you have to cover the bill.

 

[dlockers]

I use a credit card for all payments where I can. There are simply no advantages for me using a debit card.
I can't help but feel people who are so vehemently against them are projecting financial problems they may have got into themselves in the past. There's absolutely nothing wrong with using them to spend money you have to cover the bill.

Works both ways tho. Lot of cc folk haven't looked into the latest debit cards e.g. chase 1%, Monzo cashback offers; they even have a s75 equivalent. I'm a massive cc stoozer btw just trying to add some balance.

 

[Noxia]

Works both ways tho. Lot of cc folk haven't looked into the latest debit cards e.g. chase 1%, Monzo cashback offers; they even have a s75 equivalent. I'm a massive cc stoozer btw just trying to add some balance.

It's not the cash back rewards I'm talking about. It's the payment protection you simply do not get with debit cards that alone makes it worth it for me. I don't buy enough stuff to care about 1% cash back but I get it all adds up etc.

 

[radderfire]

I use a credit card for all payments where I can. There are simply no advantages for me using a debit card.
I can't help but feel people who are so vehemently against them are projecting financial problems they may have got into themselves in the past. There's absolutely nothing wrong with using them to spend money you have to cover the bill.

0% deals are just marketing. Credit card companies are out to make money out of people, that's the bottom line, and they do, lots of it. I've never had any problems, but a lot of people do. Whilst you are right that responsible people can use them, possibly to their advantage, a lot of people are useless with money and get their lives severely disrupted/ruined by credit card debt. Hence my stance and advice, avoid whenever possible, and I stick with it. Each is entitled to their opinion though.

 

[Kenai]

I think if you are a cash buyer it can put you in a strong negotiating position.

Times have changed, if anything this probably puts you lower down the queue because margins on the actual cars are crap and the money to be made is on finance/kick backs - a dealer would far rather sell to someone wanting finance than someone who has cash (all else being equal).

 

[Noxia]

0% deals are just marketing. Credit card companies are out to make money out of people, that's the bottom line, and they do, lots of it. I've never had any problems, but a lot of people do. Whilst you are right that responsible people can use them, possibly to their advantage, a lot of people are useless with money and get their lives severely disrupted/ruined by credit card debt. Hence my stance and advice, avoid whenever possible, and I stick with it. Each is entitled to their opinion though.

I get that, eliminate the risk entirely approach. I guess there are too many variables to make blanket statements either way.

 

[radderfire]

It's not the cash back rewards I'm talking about. It's the payment protection you simply do not get with debit cards that alone makes it worth it for me. I don't buy enough stuff to care about 1% cash back but I get it all adds up etc.

The payment protection is a genuine benefit, but this only applies to financially responsible people, probably like yourself, otherwise it gets more than cancelled out by interest payments. Personally I still avoid credit card purchases where possible on principle, and just put more research into buying decisions so I hopefully don't need the payment protection. I've never needed it to date.

 

[radderfire]

Times have changed, if anything this probably puts you lower down the queue because margins on the actual cars are crap and the money to be made is on finance/kick backs - a dealer would far rather sell to someone wanting finance than someone who has cash (all else being equal).

I think it's a fair point, especially when supply was disrupted by covid. However, I would never let this bother me because I only care what works for me, not the dealer, and if I find them rejecting me on such grounds I am simply taking my business elsewhere and never buying from them again. Also, I only ever buy secondhand cars so it's not going to apply to me

 

[Zefan]

Credit cards are awesome. Use them as a tool to minimise expenditure (and the unnecessary use of your otherwise investable funds) rather than to maximise what you can afford.