0% Credit card for part payment (car) - good idea or not
- Thread starter DJMK4
- Start date
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?
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?
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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 ?.
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Commissario
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 cheers all
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Associate
- Joined
- 8 Oct 2008
- Posts
- 1,296
I purchased a vehicle in full with a visa debit card a couple of years back around 8k. The vehicle failed within a week. The dealer had classic dealer responses and didn't want to know. Phoned hsbc, provided copies of receipt & correspondence, they refunded my money within around 14 days no hassle at all. I did loose out on around £150 for a tow truck to dump it outside the dealers forecourt. I was amazed how simple and stress free the whole process was. However not as amazed as the dealer was when they found out the bank took the money from them without their knowledge.
Man of Honour
You only need to put a quid on CC for your purchase to be covered as long as the cash sale price is between £100 and £30k
So its good if you want a full refund on the car and you giving the car back, but if you have issues with the car (IE something thats fixable but they wont sort it) i guess CC protection like this wont help you on something you need fixed on the car but they wont sort under warrenty when it should be? and having to sort it under your own expense?
IE it only helps you out if you want to give essentially give the car back in full and have a full refund
IE it only helps you out if you want to give essentially give the car back in full and have a full refund
Soldato
- Joined
- 30 Nov 2011
- Posts
- 11,375
I've never had an issue with them at least taking £1-2k on a CC
Section 75 makes the CC company equally liable, so if you want to get the car repaired then the CC company is obligated to help you with that too, you just have to communicate with them prior to spending the money on the repair (a CC company is much more likely to want to spend a lower amount on a repair than being liable for a full refund)
Soldato
- Joined
- 30 Nov 2011
- Posts
- 11,375
0% on purchases means it's actual 0%
Transfers always have that big fee so you're still then paying a percentage, plus if you do cash transfer you then get no S75 cover as the purchase itself is in cash, not via the CC, you'd be better off getting an actual car loan and shopping around for low/0% offers. Getting a loan for a car with no S75 is begging for problems.
Only worth doing if you
1) have the funds available
2) can pay on a 0% purchase card
3) have the budget for the monthly repayment.
The reasons as follows:
1) so that you can benefit from the interest earned on the money you are effectively borrowing for free
2) so that you are effectively getting an interest free loan
3) obvious but you have to be able to afford the monthly payments
as long as you can do 2+3 you are still going to benefit.
1) have the funds available
2) can pay on a 0% purchase card
3) have the budget for the monthly repayment.
The reasons as follows:
1) so that you can benefit from the interest earned on the money you are effectively borrowing for free
2) so that you are effectively getting an interest free loan
3) obvious but you have to be able to afford the monthly payments
as long as you can do 2+3 you are still going to benefit.
Repayments are no issue on a short term loan or credit card .
I will be laying down my own money also
If you see me posting In other threads relating to savings you will see that I have sufficient savings backings..
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I don’t recall every users financial details in every post, there’s a lot of different people to keep a track of 
However good you have the savings to cover the balance and offset the interest free with interest earning savings. It’s what I’ve recently done, we part ex’d the wife’s car to upgrade for her, cleared rest of the cost on a CC I specifically got for the purchase and then lumped said savings in a specific account.
Now I make a min payment of £300 per month and I just use the that card as regular spending so the min payment isn’t wasted.
However good you have the savings to cover the balance and offset the interest free with interest earning savings. It’s what I’ve recently done, we part ex’d the wife’s car to upgrade for her, cleared rest of the cost on a CC I specifically got for the purchase and then lumped said savings in a specific account.
Now I make a min payment of £300 per month and I just use the that card as regular spending so the min payment isn’t wasted.
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