Credit limit and 0% apr query

shane1104

Hi all,

Looking to get a credit card to pay off my car insurance in one lump sum, and save by doing so. I will be a first time passer at 28 ( long time coming) so my insurance is coming up about £1200 per year on most small 1.1-1.4l cars, so i would prefer to pay £900 in one go, and then pay off the CC monthly (as i would of done the insurance)

now using the MSE credit card eligibility calculator i have been given a 40% chance of getting:

Lloyds - Up to 19 months 0% spending
SOME MAY GET 16 MONTHS AT 0%

Bank of Scotland - Up to 19 months 0% spending
SOME MIGHT GET 16 MONTHS

M&S - 19 months 0% spending
PLUS EARN SPENDING REWARDS

Halifax - Up to 20 mths 0% spending
LONG 0%, THOUGH SOME MAY GET 16 MONTHS 0

now if i were to be accepted for one of these, and i got a limit of £1000 (how likely?)
and then i paid it off in 9months (£100 p/m) does that mean no interest is applied and i wont pay more than the £900 i spent?

[Deleted User]

Yes. As long as you pay off in full before the end of the promo period (and stick to the terms of the agreement), you won't be charged interest.

MisterBaxter

Also check that the insurers don't apply a fee for paying by Credit Card. If they do then make sure when you compare the cost of paying by card with the cost of paying monthly to insurer you take in to account the fee.

shane1104

MisterBaxter wrote: »

Also check that the insurers don't apply a fee for paying by Credit Card. If they do then make sure when you compare the cost of paying by card with the cost of paying monthly to insurer you take in to account the fee.

I will check, but the fee isn't going to be £400?


I got accepted in the end for a Santander Credit Card 18.9% APR, 16month Interest free card £2k limit, I don't even need that much £1k max) but its nice to have for emergencies in the future. I plan on paying £100p/m to clear the payment. So I would be inside the Interest free period easily.


I just cant understand how car insurance can be £802 lump sum, or £1277 via monthly instalments.

steve_ben

Because they put a loading, laughingly called an admin charge, if you chose to pay by monthly instalments

MisterBaxter

£400 for paying monthly seems really steep. I know they charge for the privilege but I genuinely wouldn't have expected it to be that much. What are you going to do next year though? Premiums will come down but by how much?

shane1104

MisterBaxter wrote: »

£400 for paying monthly seems really steep. I know they charge for the privilege but I genuinely wouldn't have expected it to be that much. What are you going to do next year though? Premiums will come down but by how much?

just ran a quote now: 1.2 fiat punto 2007 plate: £1266 instalment , £927 Lump sum.


re-ran quote with 1 years license, 1 years NCD: £977 instalments, £677 Annually


does that seem about right for 1 years NCD as an over 25 driver?