Need a bit of advice - thanks

goodmorningsunshine

My elderly mother is buying a large purchase (Caravan) and will pay cash but doesn't have enough so needs some extra (cash) to pay the balance. We went to the bank asking about a loan, then I asked about Credit card.

We were told 0% purchase card over 15 months, which sounded good. We left to mull over. Contacted Bank next day (what a palaver !! call centre !!!!) got appt to apply for the card.Different person)

My mum had to go herself and I couldn't manage, and she was
told that she was better with a LOAN and that there was no such "product" as a card with 0%. DISGRACFUL - SHAME ON YOU

So my mum left with steam coming out her ears !!!!

Question is; should we go back together, or is a loan best (obviously it would be with a different provider) ?!? just to save all the hassle, which I think they probably want us to do.

Sorry so long winded.

InsideInsurance

Is there a reason you want to do it in branch rather than doing it online with her and thus save the trip anywhere?

A 0% purchase credit card will almost certainly be cheaper assuming she will be able to pay it off within the 0% period unless it is just for a month that she needs the money in which case you'd need to check if seller charges a credit card fee (some charge up to 3%)

goodmorningsunshine

Thought it would be quicker in branch, and it will be repaid over the full 15 months.

How long before you receive the card?

goodmorningsunshine

InsideInsurance wrote: »

unless it is just for a month that she needs the money in which case you'd need to check if seller charges a credit card fee (some charge up to 3%)

No one as yet had mentioned the seller may charge a credit card fee. This is worrying.

Does this mean if she paid it back within one month, the seller of the caravan would charge the fee? or the cresit card supplier charges the fee if paid back within one month. It will be paid over the 15 months free 0%.

Sorry a bit garbled, head all over the place just now.

JakeGreen

The seller of the caravan *might* charge you a fee for using the credit card to buy the caravan. It should be no higher than 3%.

If you buy it using a 0% card, you'll have to make at least the minimum payment each month.

If you do that, and pay off the money before the 0% offer finishes then you won't pay any interest or fees to the credit card company.

Indeed if you get a cashback or rewards card you may even get something back from them.

Tixy

Where is she buying the caravan from?

A dealer or a private individual? If its a dealer just give them a call to see if they charge a fee for paying by card (its quite common a car dealers so possible that a caravan dealer would).

How much is the shortfall she needs to borrow?

How old is mother? does she work / have an income? It may well be that she would not be eligible for a 0% credit card at her bank and that is what they meant at the second appointment.

InsideInsurance

goodmorningsunshine wrote: »

Does this mean if she paid it back within one month, the seller of the caravan would charge the fee?

The one month is irrelevant to the fee itself.

When you pay a company £1,000 by credit card, whilst £1,000 goes from your account the seller doesnt actually receive £1,000 but instead around £975 with the banks along the way taking a small cut of the money.

Some companies dont want to lose £25 from the sale so will add a card fee on, often around 3%, so that you pay them £1,030 and they receive £1,004 with the extra £4 first of all being due to wanting round numbers but also in theory to cover the cost of having the card equipment, cover chargebacks etc.

The reason I mention it is (a) to ensure you factor it into your thinking but also (b) it may be cheaper by other methods if you are paying it off within a month. For example if you had an overdraft for £1,000 with a 19.9% APR then the one months interest would be £16.58 and so below the extra £30 the merchant would charge.

Obviously if you want it over a month or the merchant doesnt charge a card fee then its irrelevant.

SnowTiger

goodmorningsunshine wrote: »

My elderly mother is buying a large purchase (Caravan) and will pay cash but doesn't have enough so needs some extra (cash) to pay the balance. We went to the bank asking about a loan, then I asked about Credit card.

We were told 0% purchase card over 15 months, which sounded good. We left to mull over. Contacted Bank next day (what a palaver !! call centre !!!!) got appt to apply for the card.Different person)

Perhaps it was down to the language used. You mentioned she needs some extra "cash". When I hear someone use that word I assume they're talking about that paper and metal stuff.

Using a Credit Card to get "cash" will probably be more expensive than a loan. Few cards offer a 0% interest period on "cash".

And not all sellers accept credit cards. Private ones almost certainly wouldn't.

So, perhaps your Mother gave some additional information during the second meeting, or there was a misunderstanding about the wording used.

Also, the bank may have been willing to offer your elderly Mother a loan, possibly secured on property, but were unwill to offer her a 0% APR credit card.

goodmorningsunshine

Tixy wrote: »

Where is she buying the caravan from?

A dealer or a private individual? If its a dealer just give them a call to see if they charge a fee for paying by card (its quite common a car dealers so possible that a caravan dealer would).

Caravan site

How much is the shortfall she needs to borrow?

4,000

How old is mother? 75

have an income? More than me and I work full time. !!!It may well be that she would not be eligible for a 0% credit card at her bank and that is what they meant at the second appointment. Met all criteria, bank said at 1st inverview 80% likely she would get a card, which the bank said was highly likely.

SNOWTIGER
Perhaps it was down to the language used. We never mentioned we needed cash, it was to be a PURCHASE card. we were told that as soon as we took CASH out of the card interest would be charged. (This is the card the second interviewee said did not exist)

INSIDEINSURANCE
Very helpful info, thanks

ANYWAY ALL SORTED OUT TODAY, MUM DECIDED ON A LOAN (NOT FROM THE BANK), AS FELT SHE HAD BEEN MESSED ABOUT BY THEM. WENT ELSEWHERE.

goodmorningsunshine

A big "THANK YOU" to everyone who gave good sound advice and info.:beer::T