Buying a car with a Money card and balance transfer card

Italodave

Hey all,  I’d like to know if anyone has already tried to buy a car with a money transfer card and tried to apply for a 0% balance transfer card before the end of the money card ends. Applying for a money transfer card should tell you if you’re qualifying to get the funds into your bank account but how to be sure that if you apply for 0% balance transfer will have the necessary limit to transfer a large sum ? 

CliveOfIndia

Italodave said:

but how to be sure that if you apply for 0% balance transfer will have the necessary limit to transfer a large sum ? 

You have absolutely no way of knowing until your application is processed.  All you can do is apply for both cards and see what result you get.  I'd be tempted to apply for the BT card first, that way at least you'll know what you're looking at.  But that in turn may impact your success of then getting the MT card.

It's worth doing an eligibility check first (ideally on the lender's own website) to give you a rough idea of your chances of being accepted (for both cards), but do remember that the results are an indication, not a guarantee.

This may or may not be a consideration for you, but remember that if you do a MT and use the cash to buy the car, you won't get any Section 75 protection.  The way around this is to pay a small amount on an ordinary credit card, then pay the balance in cash.  Most dealers will accept a small deposit by card, even though they won't usually accept the full amount.

born_again

CliveOfIndia said:

Italodave said:

but how to be sure that if you apply for 0% balance transfer will have the necessary limit to transfer a large sum ? 

You have absolutely no way of knowing until your application is processed.  All you can do is apply for both cards and see what result you get.  I'd be tempted to apply for the BT card first, that way at least you'll know what you're looking at.  But that in turn may impact your success of then getting the MT card.

It's worth doing an eligibility check first (ideally on the lender's own website) to give you a rough idea of your chances of being accepted (for both cards), but do remember that the results are an indication, not a guarantee.

This may or may not be a consideration for you, but remember that if you do a MT and use the cash to buy the car, you won't get any Section 75 protection.

Deposit on CC will cover that 👍

Nebulous2

I'm sure lots of people have. I've part-funded a vehicle with a money transfer in the past, but paid it off before the 0% on the MT expired. 

As with any time a 0% deal is coming to an end, there are no guarantees that you will be able to shift the debt. If credit card companies are concerned about the state of the economy and the potential for bad debt they will tighten up on their lending, and may not make you an offer. If you already have a big debt on the money transfer card, that reduces your likelihood of getting a balance transfer offer. In those events it is often sensible to take whatever you get offered, rather than turning down an offer which is less than you had hoped for. 

Italodave

Thanks all for your responses. 

What would you advise would be best to do ? As interests when getting a loan are extortionate. 

PS : I don’t have debt other than my mortgage 

CliveOfIndia

Italodave said:

What would you advise would be best to do ? As interests when getting a loan are extortionate. 

Well the short & sweet answer is buy a cheaper car, ideally one that you can buy outright from savings 

Seriously, using any form of finance to buy a car (which is a depreciating asset) always needs some thought.  If you can comfortably afford the repayments, then fine.  But if the finance stretches you then what happens when the inevitable repair bill comes along, quite apart from the routine costs of running and maintaining the car?

What sort of car are we talking about - an almost-new one that's costing tens of thousands (unlikely, I suspect, given that you were looking at a MT card to finance it)?  Or cheap little runabout?  If the latter, then you may be able to get a MT offer for a sufficient amount, and just make sure you repay it before the full-rate APR kicks in.

Maybe slightly off-topic, but have you checked all 3 of your credit files to make sure there are no unexpected negative markers on there?  I know interest rates in general are on the way up, but if you're being quoted "extortionate" rates then this may suggest there's something on your credit history that the lenders don't like.

Although, it could simply be the result of a "thin" credit file, if you say you have no debt other than a mortgage.

But it's definitely worth having a look at your credit files.  Ignore the meaningless score you'll see, as well as the CRA's assessment of your credit-worthiness.  Just make sure all the data are factually correct and that there are no negative markers on there.

daivid

Natwest (and sister banks Ulster & RBS) will tell you what limit you can expect as part of the eligibility check (not a guarantee but a good indication) they also currently have among the best 0% no fee cards available. Perhaps look to see if the limits are enough. For the money transfer MBNA and Halifax have been good for me as they have given no fee MT that can be BT away immediately so minimal interest charged either. The question about repaying the card(s) is highly pertinent! If you know you can and will repay before the 0% ends then thinking of it as a cheap loan is ok, if you will be needing to recycle with BT down the line that is very risky - you could end up stuck on 25%+ apr. BT cards really dried up a few years back and took a couple of years to return properly, no one knows if/when that will happen again.