Best Credit Card & credit limit questions

hugonellie

I am after about 8k of 0% interest free to help buy a car, roughly in March / Feb next year. I'll have an 8k/9k deposit for it also. Am I better off closing both my current cc's for this?

I have a Halifax Clarity card which I just use for cheap exchange overseas spending on holidays - and pay the balance off as soon as I return - it has a 5.6k limit on it - I'd like to keep this if possible, can I lower the limit myself?

I also have a Tesco 0% purchase card, which I will be clearing the balance off next month - the 18 months 0% runs out on it in March - and probably closing. This also has a 5.6k limit on it but I wont need it once the balance is cleared

Basically I am just after the cheapest way of getting 8k to put towards a car next year. I don't have any other debts and I've never missed payments etc and I own my own home (40% equity)

I'm taking for granted I can buy a car on a credit card? I've never had to do this before, I have always paid outright - is this possible?

Nasqueron

You can lower credit limit yourself - Halifax let me do it on the online banking (different card but should be the same).

Reducing your available credit is ok but will take a month or 2 to register with the agencies.

You can buy a car on CC though they will probably add on a % fee for using the CC (to reflect their costs) so even if you got a 0% purchase card AND managed to get an 8k limit what you save may not be so nice with 2% added on (could negotiate with dealer though).

Do you need a 17k car?
Could you get one on an interest free deal or one of those pseudo-rentals with option to keep or return car at the end.

Could do with also knowing rough salary and amount of debt on mortgage but can't say you will get an 8k interest free card easily.

hugonellie

Thanks for the reply! I'll reduce the clarity card now then, because I defo don't need anywhere near that amount on it. maybe 1.5k max

No I dont NEED a 17k car, I want one....and I will get one, so I just want the cheapest way of doing it....I want a specific type of car too, so a rental isnt an option

I earn 30k basic (been here 12 years) and anything up to another 10k freelance. approx 60k mortgage debt (paid approx 40k off) and over pay every month.I've been at my home over 5 years so electoral roll is up to date too

loans are looking at about 4% so even with a 2% card fee i'd still be better off with a cc...unless I am missing something?

edit: halifax credit card limit is now 1.5k

Nasqueron

I tend to lean the same way with cars don't worry, I fancy an AWD suv crossover (AWD for partner's use which involves driving on fields and down old lanes) and quite happy to get a new one paying cash as depreciation doesn't apply to me as I intend to run it for 10+ years like my current one, was just speculation on alternative options as there have been posts on here from 18 year olds who want something like an Audi S3 and haven't thought it through with regards to running costs etc but as you have a good salary and want a specific model then it's rather different

Regarding credit limit, I did mine before getting a BT card, it took about 5 weeks to update with the reference agencies (check for free at the Noddle site) as they only do it once a month so if you miss the deadline it'll be on the next report which lenders would then see.

I'd personally pay off the other CC, close it (get it confirmed in writing, don't just cancel the DD so you don't get any nasty late payment fees if they do something wrong and need to bill you the next month for a final payment) then wait a month or 2 for the card to show as paid off and closed before applying for anything else.

I didn't answer some parts as I'm not a financial expert, hopefully someone else can advise on the best way to get this money - worth asking the dealer speculatively what they would add on for a CC payment.

hugonellie

hahaha your going to laugh when I tell you I really want a Landrover Defender! :rotfl: I tend to keep my cars for around 5 years, so the depreciation doesn't bother me too much - plus I don't think a nearly new defender should be too bad on that front not really fussed on running costs, it wont be much more than mine now.

cheers for the noodle suggestion - never heard of them before!

I think your right, paying off the remaining tesco card (its got 1.8k on) in the next month or so and then closing it will hopefully give me the best chance. I'm not planning on getting another car until feb / march next year so my files should be 100% updated by then and I'll only have the 1.5k available on the halifax showing.

I'll start looking in the new year for loan rates / cc 0% deals and what dealers have on offer. I cant really go now because I know I'll fall in love with one and just get it!

if I cant get enough credit on one, ill speak to the bank of dad also :rotfl:

Thanks for your help

Nasqueron

FYI it's Noddle not Noodle - it's the free front end for Call Credit - just so you don't end up on some scam site - they let you register for free and you can see then if everything is up to date (though not every finance group updates all 3 agencies (Experian and Equifax)) - would suggest a check of this before applying for anything just in case there is any incorrect data on there.

https://www.noddle.co.uk/

Worth asking the dealer to see if they have any offers on a specific model - may also be worth waiting until month end as well in case they have sales targets to hit

hugonellie

Thanks (again!)

I've been on noddle (stupid typo fat fingers) and everything looks good, everything is correct and up to date and it shows I get a 5/5 score. There's nothing there that shouldn't be there - which is good news! my balance on my mortgage is a lil better than I had thought too

17k is only going to buy me a nearly new one - as I am pretty sure the brand spankers are well out of my reach! I might ask nearer the time though...I was being conservative with my deposit earlier, so I guess it will depend on what I can save between now and then

awesome tips for the end of the month figures and offers - thank you :beer: