How much credit?

tomo658

I'm looking at getting a 0% credit card to pay off the rest of my car finance. Is there a way of knowing how much credit you should expect to receive before applying? I've done the eligibility calculator and I'm 95% eligible on a few cards

[Deleted User]

You're looking at doubling your borrowing, so ask yourself:-

Would me having that amount of credit, be acceptable to a lender?

MallyGirl

be aware you cannot directly pay off a loan with a credit card - you would need a money transfer card for that

[Deleted User]

I guess you could withdraw cash from the CC, and use that to pay off the loan, but that might incur charges.

tomo658

My situation is, I've had a car with ford for the past 3 years where I pay so much a month and at the end of the 3 years, I can either hand it back, get a new car or buy it outright.

I want to buy it outright so I own it. I thought I'd be able to pay the remaining balance with a credit card and I'll probably be able to put some of my savings towards it aswell

[Deleted User]

So, how much is there left to pay, and how much do you want to borrow?

tomo658

There's just under £5.5k to pay after my monthly payments have finished. My idea was to get a 0% credit card so I wouldn't pay any interest and I'd be able to pay it back monthly within 2 years. I've had 1 credit card in the past but I closed that last year, my credit limit on that one was £3k. Ideally, I was hoping to get a similar figure on a 0% card and then cover the rest with savings.

If this isn't feasible, then any suggestions are welcome

[Deleted User]

tomo658 wrote: »

There's just under £5.5k to pay after my monthly payments have finished.

But how much will you owe in total (ie. the remaining monthly payments, and the final payment), at the time you intend to apply?

That's the figure that will matter, to a potential lender.

tomo658

I have two monthly payments of £168.27 left, November and December.

To buy the car, the balance is £5423 which is due before 2nd January.

How long would an application take?

[Deleted User]

It's hard to say how long a CC takes to be issued, but the decision will be based on your outstanding debts, at the time the Credit Check is performed.

Assuming you have no other debts, your current borrowing is £5794-54.

If you applied right now, you would be asking to pretty much double that, to ~ £11,500.

tomo658

Bedsit_Bob wrote: »

If you applied right now, you would be asking to pretty much double that, to ~ £11,500.

I don't understand what you mean by the £11,500 bit