Card mentioned on Martins tv show?

kimberleyanddarren

Hi all,

I was watching Martins tv program and he briefly mentioned that if you were buying a new car you could use a 24 month card that was £5000 and 0%. It would deposit the cash into your bank to allow you to buy a car.

Any ideas what this is?

Our car has just broken down and we need to buy a new one ASAP (repairs cost more than the car). We are due to receive some inheritance money in the next six months so it needs to be something we can pay off in advance as we were hoping the car would hold out til then but sadly it hasn't.

Thanks

thebritishbloke

You won't be guaranteed the £5,000 credit limit. Any lender can decide to lend you as much or as little money as they like.

There's a variety of ways to do it. MBNA offer a number of cards that allow money transfers, with varying lengths and fees. They also offer a "low rate" card that doesn't have a fee, but does charge interest. You could then transfer that to the Santander 123 or Tesco 0% Fee card, but that depends on you getting accepted for high enough credit limits on both cards.

Apples2

I didn't see it, there must be more to it though.

£5k is a huge sum for a new card, especially with 0%.
It is more common to get 0% on purchases though and not super balance transfers.

It is wise to use a credit card for at least £100 so you get the S75 protection a credit card offers over cash.

Bear in mind these balance transfer cards come with a little scam.
Transfer the £5k over and repay it happily at 0% interest.
Put £30 worth of fuel in the car and that £30 will attract interest and continue to do so every month until you have cleared the £5k and start paying the fuel off.

YorkshireBoy

Apples2 wrote: »

It is wise to use a credit card for at least £100 so you get the S75 protection a credit card offers over cash.

But only if you're buying from a dealer. There's no section 75 cover for private sales.

Also, you don't need to pay £100 on the credit card. Even a pound (or less!) will secure section 75 protection on the full cost of the car (plus consequential losses should you need to sue them), so long as the other criteria are met, eg £100 to £30K cost, existing D-C-S relationship, etc.

Bear in mind these balance transfer cards come with a little scam.
Transfer the £5k over and repay it happily at 0% interest.
Put £30 worth of fuel in the car and that £30 will attract interest and continue to do so every month until you have cleared the £5k and start paying the fuel off.

You may be a little out of date with recent changes? I say recent, but they're a few years old now.

Your payments go towards the highest interest rate balance first. At 1% plus interest, the first £50 repaid will clear the £30 fuel purchase first, and then pay £20 of the 0% BT.

Yes there may be some pennies in residual interest on the next statement, but it's not a big deal these days.

And don't forget that many of these MBNA cards have 3 months 0% on purchases too...with a payment order that settles 0% balances with the earliest end date first.

Fruit_and_Nut_Case

Check out the ITV Player if you want to refresh your memory.