Thinking about maxing out a Credit Card to buy a Car.

bobson_2

I think I signed up to this forum ages ago, but forget my password and killed the original mail account due to spammage.. any how.

I'm skint. I have a day job which I hate, but also freelance. I'd like to go freelance full time but to do this I need to learn new tricks - I've signed up to night school in order to learn a couple more programming languages (this course has cost me £150 and has proved more useful than my Mickey mouse degree which cost me ten times as much.... but that’s a rant best left elsewhere) The college in question is a good 2 hours away and my car has packed up. Train isn’t an option due to the late start and finish. So I need a car, but don’t have the funds to purchase one.

However, later this year I'm to inherit a large sum of money from my Grandfathers estate (He died 10 years ago, but thankfully would not let me inherit until I was of an age he deemed responsible).

So.. I've been thinking..

I don’t have any debt other than the aforementioned useless degree, and a small overdraft of £300 which I sometimes fall into.

If I was to take one of those 12 month 0% credit cards or something ( I've been offered cards with limits of £5K+ in the past but always tell the bank to sod off.. ) and max it out - I could then buy a car, and pay the debt off in August when everything comes through. I'm not looking at porche's... an old fiesta will do.

I'm fairly certain I'll get the cash, however, my Dad has warned me that its linked to the stock market. He said I'm guaranteed at least £30K back provided we don’t have another "black Wednesday" or the treasury fleece it like "they have maxwelled the pensions"... My Dads coming up to pensionable age.. and its a bone of contention..

Anyhow.. does this sound a sensible solution to my dilemma, or an accident waiting to happen?

bobson_2

Thanks for the reply. I'm fairly certain I'll get it. However, without it I would be totally stuffed.. I would have no means to pay this off.

I've just asked my Dad, and currently the account stands at £63,513 - however, at one stage it was pushing £90K.. I guess that shows how fickle the stock market can be.

I thought with a 0% card there was no min repayment each month? If the min repayments around a tenner a month I can manage that. With regards to moving the debt - Ideally I'd like to get rid of it asap..

What’s a not fact mega APR proper rate?

savvy

Hi Bobson

I too needed to get a new car and didn't have any cash for it. Luckily at the time a credit card was doing a Life of Balance transfer at 3.9%, so I paid for it with one card then transferred that amount to the 3.9% one. So effectivelygot a car loan at 3.9% I don't think there are any that good at the moment, but it may be an option for you Ian's advice is great, take that lump sum out of the equation as you can't really rely on it, and see if you could manage the amount on a credit card.

Oh and lucky you if you DO get that amount

Bossyboots

bobson wrote:

Thanks for the reply. I'm fairly certain I'll get it. However, without it I would be totally stuffed.. I would have no means to pay this off.

I've just asked my Dad, and currently the account stands at £63,513 - however, at one stage it was pushing £90K.. I guess that shows how fickle the stock market can be.

I thought with a 0% card there was no min repayment each month? If the min repayments around a tenner a month I can manage that. With regards to moving the debt - Ideally I'd like to get rid of it asap..

What’s a not fact mega APR proper rate?

I think you have that wrong. You still need to make a minimum repayment each month and if I understand it correctly, if you miss just one by even one day, you lose the 0% privilege and the card is switched to interest bearing immediately.

I think you would only be able to put £300 on a card to garner a minimum monthly repayment of £10.

ktkrunch

As an experienced credit card transfer tart, I have not come across one that does not demand a minimum payment. It seems to vary between 2% - 3% or £5 (which ever is greater), and you are hammered immediately with the full rate plus penalties if you are a day late with your payments. I have one for £2500 with Mint at present and the minimum payment is 2.5%, ie: £62.50