Best credit card to pay car insurance?

Skiddywinks

Hey guys. I am looking to start driving soon, after having spent extortionate sums just getting my license. The best quote I have found so far is £1000, which I can not afford to pay in one go, but also really could do with not paying monthly, since it adds about £200 to the total.

Obviously, my first port of call for advice was here, so I went to the insurance section and did some reading. I handnt thought of using a credit card until I read it here.

My only real question is, since I could pay it off in no more than 3 months, does it really matter looking for the longest no interest period or lowest APR?

Also, by minimum payment (using the Tesco card as an example), does that mean 3 per cent of the total amount has to be paid per month to not incur any charges? Or is it not that simple? Like I say, it should be paid off in a few months, so I can easily afford to pay atleast £300 a month, meaning I should be safe.

Other than the insurance, I have no plans to use the card.

Regards,
Mark.

Eydon

If you really think that you can pay it off in three months, then look for a card that offers cashback/rewards as well as 0% on purchases for 3 or 6 months. That way you get some of the money back (typically around 1%).

As for the minimum payment, then yes. If it's quoted as 3% then it means 3% of the statement balance, so your first payment would be £30. The next month it would be £29.10 assuming you don't spend any more on the card and you get a 0% on purchases introductory offer.

betti911

My fiance and I are buying a car with a card this month too. He has a big deposit but we took out a Tesco card (12 months interest free) to cover the remainder. Its been approved in principle so fingers crossed. Not sure if there will be an admin charge of 3% tho for paying with card but even if there is it will be cheaper than paying by car loan.

Skiddywinks

Thank you for the info!

So what if a card does not offer (say) 6 months interest free? Does that mean that even if you make the minimum payment, you pay interest? I'm looking at a cash back Halifax credit card, since all my shopping is done at Asda. On the website, I canKt find mention of any months interest free.

It might be worth getting both, except only the interest free one for now, for the car insurance.