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

[DJMK4]

Like I said guys. I may not even end up using it. In which case I'll probably just close it. It will not end up being used for other purchases

 

[DJMK4]

Hi all received the 0% card today.

Although in the back of my mind I dont think many places are going to accept it. And I don't really want to have a card that may effect car finance application and in the back of mind traders who are only going to let me stick £500-1000 on it for the purchase.

Also. If I have a 0% card with a 4k limit. Is this going to have an effect If I say want to apply and put some on car finance company ? I assume car finance may do a credit check and see a recent credit card application .

I am looking to pay a deposit and lump sum but my main aim if I purchase is to get the balance down asap.

With car finance companies these days, if you make bigger overpayments can you have them recalculate and bring down the monthly the monthly payments ?


I have 21 days apparently to make up my mind on if I keep the card or cancel it without it effecting my credit rating. Apparently cancelling after 21 days or closing the account effects your credit rating. Can anyone confirm this?

 

[fRostiE]

Wife and I bought a used car from a Ford garage last October, they let us put only £250 on our credit card, but even part payment of an item gives you that credit card protection, the rest they insisted was on debit card... owing to the percentage fee's for the amounts they permit on CC

 

[DJMK4]

Wife and I bought a used car from a Ford garage last October, they let us put only £250 on our credit card, but even part payment of an item gives you that credit card protection, the rest they insisted was on debit card... owing to the percentage fee's for the amounts they permit on CC

But if you use car finance doesn't this cover you with section 75 ? Or can you use your card and say pay £500 or £1000, if there is any problem ie catastrophic turbo failure , garage won't sort it. You have protection ? But you have only paid £250 on the card ? What is it protecting against if you have only put the £250 on the card ?.

 

[Diddums]

The law.

This is very easily googled.

 

[DJMK4]

Yeh I am reading now. Ok, it was more the question around applying for credit card and car finance at the same time if there will be issues

 

[Werewolf]

But if you use car finance doesn't this cover you with section 75 ? Or can you use your card and say pay £500 or £1000, if there is any problem ie catastrophic turbo failure , garage won't sort it. You have protection ? But you have only paid £250 on the card ? What is it protecting against if you have only put the £250 on the card ?.

Just putting £100 on a credit card or other form of credit gives you full protection if something goes wrong with the purchased item and the seller is unreasonable, or if for example the retailer goes bust between you paying and taking possesion of the item.
IIRC there is an upper limit (25k or something?) if it's a part payment but basically if the garage tried to get out of their legally mandated warranty or something the credit company (be it card or finance) can basically fight for you or refund what you've paid.

I never pay for anything that isn't going to be walking out the door with me, or that is high value without using the credit card for at least part of the purchase.

When one of the carpet places went bust years ago my parents had paid for carpet, fixings, delivery and fitting, the company tried to get my parents to accept just the carpet and collect it with no refund for the other goods and services they'd paid for, the credit card basically said "yeah that's not on, fill this form in and we'll cancel the payment. For now it's not counting towards your credit limit or payments".

 

[DJMK4]

Just putting £100 on a credit card or other form of credit gives you full protection if something goes wrong with the purchased item and the seller is unreasonable, or if for example the retailer goes bust between you paying and taking possesion of the item.
IIRC there is an upper limit (25k or something?) if it's a part payment but basically if the garage tried to get out of their legally mandated warranty or something the credit company (be it card or finance) can basically fight for you or refund what you've paid.

I never pay for anything that isn't going to be walking out the door with me, or that is high value without using the credit card for at least part of the purchase.

When one of the carpet places went bust years ago my parents had paid for carpet, fixings, delivery and fitting, the company tried to get my parents to accept just the carpet and collect it with no refund for the other goods and services they'd paid for, the credit card basically said "yeah that's not on, fill this form in and we'll cancel the payment. For now it's not counting towards your credit limit or payments".

Ok thanks all, I'll have a read. Still not sure if this is protection on refund of the whole purchase or if the protection is the credit card company will refund any money you have had to pay to sort out the issues out of your own pocket because of a trader issue.

Obviously if your car has a catastrophic engine failure and blows up, then your going to want a full refund. Having abs issues, turbo issues they won't sort under warranty how will the credit card company handle it? Reimburse you for the repairs of sorting it yourself and then fight with the trader

Not sure if it will effect me now applying for car finance if I come across something or not. My credit rating on MSE is excellent and have 90% chance across all card types and loans. Should be ok .