New to Credit Cards

Dee1903

Hi,


I want to purchase a car on a credit card and will be in a position to pay it all back in full by the end of the year. I'm looking to spend around £4000-£5000 max but am unsure of all the costs and the wording surrounding the cards.


From what I'm reading a O% on purchases for 18 months would be the right choice. Can anyone tell me would this card charge me any extra per month? Am I right in saying that as long as I paid back the minimum payment every month by direct debit then I wouldn't incur any charges until the end of the 18 month period? Please advise?

YorkshireBoy

Problem No 1: Due to your apparent lack of knowledge it sounds like you've never had a credit card before? If that's the case it's possible that you won't get a £5K limit and/or even a long 0% on purchases card.


Problem No 2: The dealer will charge a circa 3% fee (because that's what he'll incur in charges from his merchant acquirer), that's if he's willing to take a payment so large. If he doesn't charge, then you've paid at least 3% over the odds for the car!

Dee1903

No 1: Isn't a problem.


No 2: Good point, maybe a 0% balance transfer would be better?

YorkshireBoy

Dee1903 wrote: »

No 2: Good point, maybe a 0% balance transfer would be better?

How? A balance transfer card is useful for paying debt off which has been assembled on another card. You want to buy something with your credit card, not transfer a balance.


Unless you mean a money transfer card? In which case look at the Virgin Atlantic White card...0% for 6 months for a 2% fee.

Anthorn

Dee1903 wrote: »

Hi,


I want to purchase a car on a credit card and will be in a position to pay it all back in full by the end of the year. I'm looking to spend around £4000-£5000 max but am unsure of all the costs and the wording surrounding the cards.


From what I'm reading a O% on purchases for 18 months would be the right choice. Can anyone tell me would this card charge me any extra per month? Am I right in saying that as long as I paid back the minimum payment every month by direct debit then I wouldn't incur any charges until the end of the 18 month period? Please advise?

Pretty much contradictory: You say that you can pay it off within a year but then you mention paying the minimum payment.

With a 0% purchase card the goal is to pay it all off before the 0% period expires to avoid being hit with interest. Otherwise transfer it to a 0% balance transfer card if that's allowed or even a 0% balance transfer and 0% purchase card.