CC to cover car insurance?

wakey1989

Hi guys, I'm looking to get a credit card (Tesco 0%) to pay for my car insurance renewal next month. I try to save but with being back at college (and paying for it £££) plus other stuff I haven't managed to save anything.

So... at 21, 1.3 1996 toyota is coming to £650 - £750; paying in full saves me roughly £80.

Is it worth it and what happens once I have paid it off?

Many thanks guys.

Degenerate

It is worth it. A 12 month 0% CC offer like Tesco is a probably the best way to spread the cost of your car insurance, as long as you're disciplined about paying it back.

The problem is that a 21 year old with no previous credit cards is unlikely to get a card like Tesco.

CLAPTON

if you haven't been able to save, how will you be able to make the repayments?

ironlady2022

Are you in employment? If this is your first credit card, it will be difficult to obtain a long (ish) 0% purchases credit card - though you can try. Try looking at a 6 month one if that doesn't work out for you. I would start firstly with whom you bank with as they have your credit history and can probably tell you yay or nay before you even begin to apply. Also check with car insurance provider if it will cost you anything by paying it with a credit card - some companies charge and they must disclose this but check anyway!

mcs1977

CLAPTON wrote: »

if you haven't been able to save, how will you be able to make the repayments?

I'm 33 and can't save for toffee, but I do pay all my bills. IMO paying bills is easier than saving as you have to pay bills but you can choose whether to save or not :rotfl:
Martyn

wakey1989

Thanks for the replys guys; my situation is this atm:

I have very little spare money right now... BUT

I currently pay for my car insurance monthly £85 per month (just over £1000 for the year). So keeping up with the repayments shouldnt be tough.

Just an insight about my current situation:

I earn £400 - £450 from Tesco
Extra pennys from an IT company when I have time / they have the work

But pay for my college course - £250 every three months (£1000 a year - one installment remaining)
£85 p/m car insurance; £1000+ this year (my second year of driving is coming to an end)
Petrol varies but is around £30 a week
Mobile is £15 a month (runs out in March and will be going SIM only)
£25 p/m to repay my bursary
Rent varys atm - long story

Hope that helps