Is a credit card the right way to spread transport costs?

barnstar2077

Hi all,

I am fairly financially savvy, but have not kept abreast of credit cards for many years.

I am looking at a lump sum of £900 for a yearly ticket for transport to work in the near future. It is much cheaper to buy the ticket yearly. Although I could afford the ticket I don't really want to pay this up front if I can avoid it. At least not this year anyway.

So my question is, is a credit card the way to go? Is it possible to do zero interest without incurring fees these days?

Or is there a better solution?

Thank you

eskbanker

Can't see much downside in using a credit card offering 0% on purchases, assuming that your credit history is adequate and the limit you'd be offered sufficient to cover the purchase you have in mind. There are often fees for 0% balance transfer cards but not for 0% purchase ones (what would the fee be based on?).

https://www.moneysavingexpert.com/credit-cards/best-0-credit-cards/ summarises best current deals and https://creditcards.moneysavingexpert.com//purchases is an eligibility checker that'll assist with choosing who to apply to....

Humdinger1

Would work offer you an interest free loan? It's quite a common benefit.

Good luck and keep us posted
Humdinger

barnstar2077

Humdinger1 wrote: »

Would work offer you an interest free loan? It's quite a common benefit.

Good luck and keep us posted
Humdinger

I think the CC is the way to go by the sounds of it. I can afford the ticket but I am trying to keep to budget as I want to retire early. I am toying with getting the bus, even though I normally cycle to work, as I broke my ankle a couple of months ago so I am thinking about my options now before I go back. I may well be entitled to some compensation, hence why it should only be an issue this year.

Cheers.

Ben8282

Yes this is a very good idea. However I would suggest applying for a 0% purchases card rather than ending up paying a fortune in credit card interest. The cost of the ticket is low so you should not have any serious difficulty in obtaining the necessary credit limit.

eco_warrior

0% is the way to go

That said, the interest on 900 isn’t much anyway. Imo

Zero_Sum

As long as the CC is 0% its a good option.
As another mentioned, at my place of work they do annual public transport tickets with 1/12 of cost taken via payroll on a monthly basis.

phillw

eco_warrior wrote: »

0% is the way to go

That said, the interest on 900 isn’t much anyway. Imo

Assuming an APR of 20% then it will cost £83 a month to clear it in a year. With interest of £92.

If you like giving that amount of money away then I can provide paypal details.

PixelPound

Zero_Sum wrote: »

As long as the CC is 0% its a good option.
As another mentioned, at my place of work they do annual public transport tickets with 1/12 of cost taken via payroll on a monthly basis.

My company has a similar scheme, many do. This is a good option as the amount is deducted from your gross wage and so you are saving tax too makes it better than a CC

However most companies have cut off dates to apply for the scheme, so if OP is wanting it for this year then a CC may be a better option. Depending on when OP is retiring or whether the cycling commute is seasonal the cost of annual versus monthly/quarterly if wanting to resume cycling next spring is another consideration.