Which Card?

pete_b_4

Hi there,

I am buying new (used) car for my wife. I need to sell her current one before the tax runs out at the end of the month. We have picked out a car for her to replace it, but currently can't pay for it in cash. I have an isa that matures in approx 2 months which will pay for the car, but I need to fund the car asap. I have been advised that a credit card with 0% interest is the best and easiest option, rather than taking out a loan. I can pay for the car (4k) on the card and when my isa comes through, pay the card off without any interest. If I used a loan, I would have to pay fee's etc, for paying it off early.

So, in short, which would be the best card to do the job? My current account is with Barclays and I don't have any other cards apart from my debit card.

The card needs to be, 0% interest in the first 6 months min and easy to get hold off. I don't have a bad credit history. All I have is a mortgage and have never been in the red.

After the car is payed off, I will probably scrap the card. Or at least, keep of emergencies only.

Thanks very much for any advice you might have

bethanyrayne

pete_b wrote: »

The card needs to be, 0% interest in the first 6 months min and easy to get hold off. I don't have a bad credit history. All I have is a mortgage and have never been in the red.

There is no such thing as an EASY to get hold of 0% card but if there is nothing bad on your CF try Abbey Zero which will get you the 0% for 6 months you desire. However, can't guarantee the initial credit limit you will recieve. You could also consider Virgin and other MBNA cards

NickX

The problem you have is that the Car Dealer will likely add a surcharge for paying by Credit Card to cover the merchant fee that they have to pay. If they do not do this, then I would suspect that you have not beaten them down to their best price in the negotiation stage.

You could check with them, but I would suspect that this charge would be around 3% which would defeat the object of keeping your savings in the ISA for an extra 2 months.

However, certain cards (including Egg and MBNA run cards such as Virgin) allow you to transfer funds direct to your bank account. Again they usually charge a fee of around 3%.

However, the Virgin Atlantic White American Express card has a 6 month deal on Balance Transfers that includes transfers to your Bank Account. Although it is only a 6 month deal, the fee is capped at £50, so that is all the extra that you will pay, and 6 months should be long enough for you to redeem your ISA and pay the card off.

If you really don't want to pay any fee, then you can get a 6 month 0% deal for free using a combination of either Ulster Bank or Abbey Zero in conjunction with an Egg Money card, see Martin's article on "Egg Money trick".

Hope this helps.