Using Credit Card To Pay For Car Insurance?

McLean10

Hi there, I'm a first time driver (will be passing my test in the next few weeks) and will be looking to use a credit card to pay my car insurance off in installements, rather than paying the extortionate prices the car insurers want for a monthly payment.

My insurance will be around £1600 (not sure if this matters) and I should be able to pay it off within 4 months (give or take 1 month).

Which credit card would be the best option for me?

If I need to provide any extra info to find the best card for me just let me know.

Thanks guys :money:

[Deleted User]

What is your credit history like? You need to establish whether you could get a 0% purchases card, or something lesser (which I suspect is more likely).

I'm guessing you haven't had a credit card before?

McLean10

Deleted_User wrote: »

What is your credit history like? You need to establish whether you could get a 0% purchases card, or something lesser (which I suspect is more likely).

I'm guessing you haven't had a credit card before?

Haven't had a credit card before...have had credit accounts with certain catalogues and pay my phone contract off on time every month if thats any help?

[Deleted User]

You may be pushing it to get something with a decent offer. Who do you bank with? Do they offer a card with any good deals? Your chances will be higher with them than someone you have no history with.

McLean10

Deleted_User wrote: »

You may be pushing it to get something with a decent offer. Who do you bank with? Do they offer a card with any good deals? Your chances will be higher with them than someone you have no history with.

Halifax mate...what would be a good way to get some good credit history?

[Deleted User]

Well, leaving aside your immediate need for a card, one of the best ways is to get ANY credit card (aqua, Cap 1 etc), use it regularly and pay off in full, This helps show that you can handle credit.

Catalogues and phone contracts help as well, but a credit card is probably the best way.

Not sure what Halifax are offering at the moment, but maybe have a look at their website. Otherwise you may need to go for one of the ones mentioned above, but you could always have one shot at something better first.

McLean10

Deleted_User wrote: »

Well, leaving aside your immediate need for a card, one of the best ways is to get ANY credit card (aqua, Cap 1 etc), use it regularly and pay off in full, This helps show that you can handle credit.

Catalogues and phone contracts help as well, but a credit card is probably the best way.

Not sure what Halifax are offering at the moment, but maybe have a look at their website. Otherwise you may need to go for one of the ones mentioned above, but you could always have one shot at something better first.

Halifax have a 0% card offer at the moment for up to 15 months but generally people will get 0% for 11 or 13 months.

(Tried to post a link to it off the Halifax website but not allowed to post links, it's called the Halifax All In One Credit Card)

You think I'd have more chance with Halifax then? Whats the deal with credit cards aswell? Is it a case of if I pay it off within 4 months for example and have £0 left to pay off the credit card, then I can just cut up the card and that's the end of it? :money:

[Deleted User]

Yup, that's how it works. Pay off within the promo period (making at least minimum payments each month) and you won't pay interest.

I'd try Halifax, and if that fails, try something more basic, but the rates will be high and there won't be any promotions (with the exception of Luma, which has 0% on purchases until Jan, but with low limits. The Capital one site may also be worth a look.

chanz4

http://www.halifax.co.uk/creditcards/balance-transfer-purchase/all-in-one-card/

McLean10

Deleted_User wrote: »

Yup, that's how it works. Pay off within the promo period (making at least minimum payments each month) and you won't pay interest.

I'd try Halifax, and if that fails, try something more basic, but the rates will be high and there won't be any promotions (with the exception of Luma, which has 0% on purchases until Jan, but with low limits. The Capital one site may also be worth a look.

Thanks guys, that's the credit card I just applied for (Halifax All In One), they have said they're processing my application and will contact me in the next 10 days. Is that good or bad news?

[Deleted User]

Cool. Well, it's a lot better than a straight decline. Means they may want to check a couple of other things. Maybe a further ID check is needed - make sure you're not an axe murderer or a Justin Bieber fan, that sort of thing.

Good luck and let us know how it goes.