Any financial advisors here? Re: mortgage/car/credit score

[stephenb]

"But if I was to purchase a car around 13K and got a credit card with 0% and pay it all off within 12 months or so"

Am i reading that right, that you want to get a 0% CC and buy a car on it for £13k ??

Firstly it's unlikely you'd be offered a CC with that much available credit as like you said you've no history of paying off loans,
and secondly using more than ~25% of your available credit can negatively effect your credit score

and third, good luck finding a dealer who'd let you buy a car using a credit card

 

[413x]

and third, good luck finding a dealer who'd let you buy a car using a credit card

You can't buy cars from dealers in a CC? Is that true?

 

[stephenb]

You can't buy cars from dealers in a CC? Is that true?

Last car I bought, which was from a main dealer, I couldn't even pay the deposit on my CC. I guess the fees are too high for them?

 

[cainer]

You can't buy cars from dealers in a CC? Is that true?

You can, it depends on the dealer, some do some don't, it's all down to the handling fee's now that they can't pass them on to the customer

 

[413x]

Wow. Crazy. Are the charges that high vs... Debit card?

I can understand amex with it's high charges. But didn't know it was high enough to put off CCs

 

[cainer]

Wow. Crazy. Are the charges that high vs... Debit card?

I can understand amex with it's high charges. But didn't know it was high enough to put off CCs

Without looking into it i think DC is a flat rate whereas CC is a % of the whole bill,
that's why even if a dealer allows payment by CC they probably cap it at a certain amount,

around 20 years ago i bought a car for £8k, max i could put on by CC was £300 for the deposit, the rest had to be DC or cash

 

[Maccy]

Just checked and I've got about £50k credit available. I wonder if I maxed out all my cards this evening and put a deposit down on a nice house if I'll get away with it

Rookie numbers, if you don’t have 6 figures of available credit then that gucci belt will never be obtainable.

@ShiWarrior I’d be amazed if you could buy a car outright for £13k on credit card - I’ve managed to pay £1k of deposit on one and that’s the most.

 

[john_smith]

if I was to purchase a car around 13K

I want to maximise my chance of lowering my mortgage rate

Don't spend 13k on a car and put that towards your deposit. A credit history wont get you a lower rate. A better LTV will.

 

[413x]

Without looking into it i think DC is a flat rate whereas CC is a % of the whole bill,
that's why even if a dealer allows payment by CC they probably cap it at a certain amount,

around 20 years ago i bought a car for £8k, max i could put on by CC was £300 for the deposit, the rest had to be DC or cash

This is useful to know. Hoping to buy a van next year so I know that relying on CC is a no go

 

[ShiWarrior]

Thanks again all

maybe not getting the lowest mortgage rate possible, but "better chances"

 

[ShiWarrior]

I know this is not motors , but keeping this into my thread as its still relevant,

My car is starting to cost in repairs, he'll it's still on the original clutch, exhaust, springs etc so won't be much longer.

And the other reason, I'm switching to automatic, I need a car without a clutch pedal for my hip

When I look on autotrader I'm looking at a minimum of a 17 plate, automatic etc, prices around 10k anyway

 

[PapaLazaru]

Your deposit is more important. Bigger the better.

 

[Mr.Cookie]

Is the dealer credit card thing more to do with the additional protection a cc purchase offers rather than immediate revenue loss?

 

[~Divine~Wind~]

If you've not borrowed for 20 years that would put you at a disadvantage. Lenders like a track record of repayments. I would say your plan would arguably increase your chance of getting a mortgage, assuming you did actually clear the debt in 12 months before you buy a house

this unfortunately, I ahs to convince me brother to get a mobile jn his name and get credit on stuff.
prior to this he nigh on didn't exist on paper lol!

ad feek says... pics

whilst the rate you get on the mortgage is typically set by the ltv band yer in your credit score being higher may open up better deals or extra lenders.

you could also grab yerself a credit builder credit card, just use this daily instead of your usual debit card or contact less.
just make sure to clear it at the end of the week/month.

by the time your mortgage app comes you should have a proven track record of repayments on time and they may have even upped your credit limit.

oh and get yerself on a credit checker site as well to keep an eye on things and make sure all your details are right

 

[dlockers]

Rookie numbers, if you don’t have 6 figures of available credit then that gucci belt will never be obtainable.

@ShiWarrior I’d be amazed if you could buy a car outright for £13k on credit card - I’ve managed to pay £1k of deposit on one and that’s the most.

I bought my Ibiza for 11k across about 5 cards. Just depends on the dealerships financial savvy I guess...

 

[tribz]

That is not how it works.

Yeah, I paid my mortgage off and my credit rating dipped a bit for a few months

 

[Maccy]

I bought my Ibiza for 11k across about 5 cards. Just depends on the dealerships financial savvy I guess...

They must’ve been rather special?

 

[dlockers]

They must’ve been rather special?

More speshul than special. It was a primarily a Mitsubishi and MG dealer, mid-covid. Probably the first customer in months

 

[ShiWarrior]

I do have a CC that I do all my day to day spending on, including online stuff
I pay it off in full every month

 

[LeeUK]

There will always be a mortgage out there available if you use a decent independent mortgage broker. Might not always be the best rates but they will find you one.