Car Insurance on First Credit Card - help?

opinions4u

Stuartzane wrote: »

My first ever credit card was 0% card. I have only been banking with rbs for about 8 months and using the account as spare one ( my main account is with lloydstsb ). I was very surprised they offered me the card by email. So it's worth trying your own bank first.

Were you employed at the time? The OP isn't.

RoverMini35

opinions4u wrote: »

Were you employed at the time? The OP isn't.

Update: Good news - I'm now employed!

I had my interview last week and have accepted the job in line of accounting!

Since this thread, I discovered that I have infact had credit products (completely unaware when first asked... DOH!). I have a mobile phone contract which has been paid monthly for the past 22 months and current car insurance, which has been paid monthly for the last ten (due for renewal in upcoming months).

I have completed a pre-application form with Barclays (without affecting credit rating - found bottom right of their homepage) and have discovered that I can apply for the following credit cards:

Barclaycard Platinum Simplicity Credit Card

70-80% chance of approval

Representative APR
7.9% (variable) Purchase rate p.a.
7.9% (variable) Assumed credit limit
£1,200

Barclaycard Platinum Purchase Credit Card

70-80% chance of approval

Representative APR
18.9% (variable) Purchase rate p.a.
18.9% (variable) Assumed credit limit
£1,200
Barclaycard Freedom Retail Rewards

70-80% chance of approval

Representative APR
18.9% (variable) Purchase rate p.a.
18.9% (variable) Assumed credit limit
£1,200
Barclaycard Initial Credit Card

80-90% chance of approval

Representative APR
29.9% (variable) Purchase rate p.a.
29.9% (variable) Assumed credit limit
£1,200

I'm looking to spend about £950 on a credit card, to pay for my current car insurance quote (new quote, differs form previously posted).

Current quoted annual price: £950
Same quote, pay monthly at 18.60% APR is now £1,126.70 (£93/month).


My questions are now as follows;

- Which credit card would be most suited to my intentions of paying car insurance at £950 for 12 months?

- Should I be successful in applying, can I pay an 'annual price' quoted by an insurer on a credit card?

- I have every intention of paying off approx £80 a month (annual quote £950 by 12 months), this may be a stupid question but will this require a special kind of credit card or are there interest free amounts you can pay?

- If the credit card adds interest, will it work out cheaper than the monthly price the insurer has provided (18.60% APR)


Having never had a credit card previously, I intend on knowing as many ins-and-outs before throwing a large amount of money on one!

Any help would be greatly appreciated, thanksverymuch! :j

grumbler

1) The one with the lowest APR?
2) Yes
3) I don't see anything interest-free for the above cards. You can pay as much as you want if it's more than the minimum payment.
4) Only if the card APR is lower than 18.6% or you pay the balance off faster than in 12 months.

TherealMandM

if you try a broker for your insurance u may find it a cheaper quote and lower payments.
I used adrian flux which were almost £100 cheaper than any of the multiquote sites, on top of that interest was charged at 1% or £30 which ever is greater.
you need to phone them tho, they do have a email quote option but it gives much higher quotes then u actually get on the phone

RoverMini35

grumbler wrote: »

1) The one with the lowest APR?
2) Yes
3) I don't see anything interest-free for the above cards. You can pay as much as you want if it's more than the minimum payment.
4) Only if the card APR is lower than 18.6% or you pay the balance off faster than in 12 months.

Few more calculations to do yet then! Thanks grumbler!

matmidgley wrote: »

if you try a broker for your insurance u may find it a cheaper quote and lower payments.
I used adrian flux which were almost £100 cheaper than any of the multiquote sites, on top of that interest was charged at 1% or £30 which ever is greater.
you need to phone them tho, they do have a email quote option but it gives much higher quotes then u actually get on the phone

Definately worth a try then, paying monthly would be so much more convenient (as I'm sure it is for most) with such a high amount to pay out initially. Thanks matmidgley!

grumbler

RoverMini35 wrote: »

Few more calculations to do yet then!

If you have Excel, then, say, for 29.9% and 8 months (equal payments):

monthly rate =(1+29.9%)^(1/12)-1=0.0220
monthly payment =-PMT(0.022, 8,950)=£130.80
total amount £130.80*8=£1.046.40

RoverMini35

grumbler wrote: »

If you have Excel, then, say, for 29.9% and 8 months (equal payments):

monthly rate =(1+29.9%)^(1/12)-1=0.0220
monthly payment =-PMT(0.022, 8,950)=£130.80
total amount £130.80*8=£1.046.40

Not to sound too much of a geek, but things like this do interest me! (Good job I'm going into accounting maybe?)

Thanks!