Train Season Pass

dcouponzzzz

Hey, so from September I'll be travelling from Liverpool to Manchester by train (currently travelling by car, new job with rush hour shift). Cheapest way to do so is the £2988 annual pass.

To really make the most of paying this chunk out I've looked my employer's travel loan (10 months), 0% credit cards and possibly moving to Manchester (currently a home owner in Liverpool).

If I were to choose the CC, what is the best way to do it? The eligibility calc says I'm 90-100% for almost every card. The way I understand it (may be wrong) is I can make the purchase, and set up a standing order for £249 p/m, claim nectar points/European travel vouchers etc and forget about it til the year is up?

Other considerations are that I'd likely sell my economic diesel car for something more suited to short journeys, which would involve a new finance deal (£6k currently owed, car approx equal equity), and the likely event of me selling my home in January when my 5 year fixed term is up.

Any advice is appreciated. I don't take applying for a CC lightly but the benefits over paying £298.80 p/m over 10 months for the employer loan are hard to ignore.

[Deleted User]

With a 0% purchases card, as you long as you make at least minimum payments, you can clear it at whatever pace you want. A standing order certainly first the bill.

But do check your statements each month, rather than just 'forgetting about it'.

dcouponzzzz

Thanks ZX, I guess I was using 'forget about it' loosely as I'm always on top of where my money is (or isn't!).

Just out of curiosity, I know credit score sites have no weight towards credit applications, however my Clearscore has always had 1 red mark stating 'no credit cards' as a negative. I can see the reason it would be positive to prove I can manage credit, but putting it in the negative category is just a sales tactic for them right?

[Deleted User]

Well - it depends. Regular use of a credit card is the easiest and cheapest way of building a regular credit history.

But it's not the only way - phone contracts, catalogues, loans, as well as being on the ER etc can all play a part.

But I would recommend getting a card in any case, whether you need a promo deal or not.

Mr_Goodkat

0% purchase card is a good solution to this the only potential stumbling blocks you have is getting accepted for a purchase card, getting the term of 0% that yo want and gaining large enough limit to purchase the season ticket.

Acceptance seems likely given your eligibility checks but check out if the cards you are looking at offer a guaranteed to offer the headline rate period or if the period of 0% is based on individual circumstances. Your current credit exposure and usage will determine the kinds of limits you will get anecdotal evidence suggests issuers like Barclaycard and MBNA offer decent limits. Your own bank could be a good option if they have a 0% purchase card.

I would set up a direct debit rather than a standing order for the repayments as you are putting the responsibility on the card issuer to collect the repayments as long as you have funds in the bank and avoid any circumstances where your standing order hits too early / too late.

You could set up a DD for the minimum amount and divert the rest into a high interest paying current account / regular saver meaning you will earn some interest on the money before paying it off before the 0% expires.

dcouponzzzz

I was concerned about the limit as I'm under the impression either 1200 or 1500 is generally the offer to new customers. I've had car finance for 3 years, mortgage for 4.5 years and phone contracts as far back as I can remember. I have also been on the electoral register since I turned 18 (9 years).

I have current accounts with TSB (savings interest), Santander (joint for bills only), and First Direct (Salary and personal DD, £250 0% overdraft). Santander looks to be the best considering I only need 12 months 0% interest. The reason for asking however was to check if cards such as the Sainsbury's Nectar or Post Office benefits were worth getting for the introductory bonus (eg 5000 Nectar points) plus say Quidco cashback.

Employer loan seems like the simplest with no downsides, but if I have an opportunity to get something positive I'll take it.

[Deleted User]

dcouponzzzz wrote: »

I was concerned about the limit as I'm under the impression either 1200 or 1500 is generally the offer to new customers.

£1200 is the illustrative limit they use for the representative examples. Your actual credit limit could be anything from a couple of hundred to a few thousand.

You probably won't get the best offer or the highest limit, but it's certainly worth a shot with at least one application.

Mr_Goodkat

The £1200 in particular is usually just a representative example rather than an indication of what you will get.

Introductory bonuses like Nectar points are nice to have so if you are getting high eligibility chances then worth trying.

What is your salary as this will also impact on the likely limit?

Given your lack of credit cards in the past despite an otherwise strong credit profile - car finance, mobile phone contract and mortgage I would be tempted by the First Direct 0% 27 month balance transfer card as whilst FD can be quite selective on who they lend to if your salary is going into that account as well as transferring out for bills etc to a joint account they have a good view of your financial health and could be more willing to lend at a higher level than others just looking at your credit file - if you are turned down on the automated application you can appeal and when a person looks at it you could be successful.

A couple of credit searches won' harm you long term so pick the card which best suits you as first choice e.g. bonuses, term etc then a backup FD / another bank that you use who have an offer

Good luck

MallyGirl

he needs 0% on purchases not balance transfers

dcouponzzzz

Thanks again guys, I'm lucky you're both on this board Salary is currently 25.5k, moving to 29k basic plus on-call allowance and OT, expected 32-33k. I've been with First Direct for 1 year.

Regarding my considerations, would a successful/failed credit application and a new car finance negatively impact my mortgage application in January? Everything I've read suggests a clean credit history for 6 months prior, and my employer loan is obviously the only one that would retain that.

Mr_Goodkat

MallyGirl wrote: »

he needs 0% on purchases not balance transfers

Sorry my mistake - the First Direct Gold Card 0% for 17 months on purchases would be a good back up option