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Is balance transfer a good idea ?

I plan to buy a car with credit card and than would like to do balance transfer with new deals around with different card with 0% deal for 40 months with no transfer fee. Wondering how much its would charge for interest.

Car company is also doing loan instalments but charging around 10% of the total credit amount.

Can someone pls advice on this if better buying as balance transfer so I will have some time to save and pay it off without charging any interest.

Cheers

Comments

  • boo_star
    boo_star Posts: 3,202
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    edited 15 July 2017 at 5:11AM
    A balance transfer usually incurs fees of around 3%.

    The dealer wants 10%.

    If you can pay it off in full before your 0% offers ends, sure. But are you even going to get the 0% at 40 months and for the amount that's required.

    Edit: Which card offers 0% with no transfer fee?
  • sadia85
    sadia85 Posts: 107 Forumite
    boo_star wrote: »
    A balance transfer usually incurs fees of around 3%.

    The dealer wants 10%.

    If you can pay it off in full before your 0% offers ends, sure. But are you even going to get the 0% at 40 months and for the amount that's required.

    Edit: Which card offers 0% with no transfer fee?

    Have a look at this link please Santander and mbna both offering 0% on balance transfer and fees.

    https://www.uswitch.com/credit-cards/ppc/credit-card-balance-transfers/?ref=ppcgoogle~gen~PFG412002&gclid=CKPBsMKMitUCFRc6GwodfiIJCg&utm_expid=102396195-51.JzBqGiIjScWPCC1SLghm4g.0&utm_referrer=https%3A%2F%2Fwww.google.co.uk%2F
  • bigadaj
    bigadaj Posts: 11,531
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    You'll need a good credit file to get this deal, do you have cards with high limits, currently, highish earnings, and have the discipline to pay off within the period, if you don't and can't get a new deal then you could be looking at 20% rates or more.

    The dealer will probably want extra to pay by credit card, maybe 2-5%.

    If it all works then it's a good option but there are hurdles and risks.
  • chattychappy
    chattychappy Posts: 7,302 Forumite
    bigadaj wrote: »
    The dealer will probably want extra to pay by credit card, maybe 2-5%.

    Indeed. Also be aware of salesmen that lie. Ie they say there is no fee, you pay a deposit (indeed no fee), but when it comes to the balance they insist on a fee. Depends on the place, but if you are promised "no fee" then get it written on any paperwork you sign.
  • RG2015
    RG2015 Posts: 5,815
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    boo_star wrote: »
    A balance transfer usually incurs fees of around 3%.

    Edit: Which card offers 0% with no transfer fee?

    I believe that many do; just look on the MSE credit card section.. I have 12 months with Nationwide and 24 months with Virgin Money. My Nationwide card also has 12 months purchases at 0%.
  • RG2015
    RG2015 Posts: 5,815
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    edited 16 July 2017 at 7:24PM
    sadia85 wrote: »
    Have a look at this link please Santander and mbna both offering 0% on balance transfer and fees.

    Please note that Santander charge a monthly fee of £3.00 on some of their credit cards.
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