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Using 0% card to pay off car
Comments
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YorkshireBoy wrote: »You'd pay £100 a month and save the other £200+ per month in an account paying 5% AER.
At the end of the deal you'd repay the credit card and the interest earned (along with the interest saved) is your 'profit'. It will not be insignificant.
Needs some discipline though. If you haven't got any best you stay as you are.
Hmm, does sound like a good option. I'd just continue putting my car allowance straight into savings and pay the minimum of the credit card and pay the balance with the savings/interest when I need to.
Might have a more serious look into this and get a finance balance check to see how much extra interest on the finance I could also save!Save/Pay for wedding & honeymoon by Aug 18 = COMPLETED!
Debt free by Dec 2018 = TBD
Savings Target by July 2019 = £20,000
2016 Goal = Buy a house with 10% deposit : COMPLETED!
2017/18 Goals = Pay off Student Loan (COMPLETED!) & Car Loan0 -
You mentioned maybe handing the car back in a year.
Does this mean it's one of those arrangements with deposit, modest monthly payments, then still a lump sum to pay at the end?
Maybe that is the time to do this credit card deal, unless you're convinced you can cover the payments now and save up for the final payment, or already have been doing so.0 -
Paying off the full amount now would save approx £650 in interest. Balance to pay off is a shade over £10k.
I guess the question is - would I get a CC with a £10k limit?!Save/Pay for wedding & honeymoon by Aug 18 = COMPLETED!
Debt free by Dec 2018 = TBD
Savings Target by July 2019 = £20,000
2016 Goal = Buy a house with 10% deposit : COMPLETED!
2017/18 Goals = Pay off Student Loan (COMPLETED!) & Car Loan0 -
You mentioned maybe handing the car back in a year.
Does this mean it's one of those arrangements with deposit, modest monthly payments, then still a lump sum to pay at the end?
Maybe that is the time to do this credit card deal, unless you're convinced you can cover the payments now and save up for the final payment, or already have been doing so.
Correct. (Deposit > Monthly payments > Lump sum)
I was considering paying off the lump sum on a CC at the end and just continuing my normal monthly payments until paid off. But I'm still unsure whether I will keep it or not (I nearly traded in for a new car last month, but buying a house was the priority!). However, if I have the full balance on a credit card then I have more control over it and can sell the car when I want to pay off the remaining balance.Save/Pay for wedding & honeymoon by Aug 18 = COMPLETED!
Debt free by Dec 2018 = TBD
Savings Target by July 2019 = £20,000
2016 Goal = Buy a house with 10% deposit : COMPLETED!
2017/18 Goals = Pay off Student Loan (COMPLETED!) & Car Loan0 -
Paying off the full amount now would save approx £650 in interest. Balance to pay off is a shade over £10k.
I guess the question is - would I get a CC with a £10k limit?!
What's your annual salary? Any other credit cards/loans/HP etc?
What's your credit history like, any late payments etc?
MBNA are known to be very generous with credit limits, I have heard Virgin are going the same way too.I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com0 -
Virgin were pretty generous with my money transfer card but it all depends on OP's circumstances/commitmentsI’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
& Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
All views are my own and not the official line of MoneySavingExpert.0 -
Candyapple wrote: »What's your annual salary? Any other credit cards/loans/HP etc?
What's your credit history like, any late payments etc?
MBNA are known to be very generous with credit limits, I have heard Virgin are going the same way too.
Will need to wait anyway as I've just moved (just tried the MSE soft search credit card thing and it can't find me!)Save/Pay for wedding & honeymoon by Aug 18 = COMPLETED!
Debt free by Dec 2018 = TBD
Savings Target by July 2019 = £20,000
2016 Goal = Buy a house with 10% deposit : COMPLETED!
2017/18 Goals = Pay off Student Loan (COMPLETED!) & Car Loan0
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