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Should I use a credit card for a larger purchase?

w00519773
Posts: 222 Forumite

in Credit cards
I have a trading 212 card and a Tesco credit card. The Tesco credit card offers 0.5% cashback on purchases and the trading 21 card currently offers 1.5% cashback on purchases.
Is there any benefit of using the Tesco credit card to make a large purchase from a reputable company? For example, does it offer more insurance? I will be making a large purchase soon so wanted to check.
Is there any benefit of using the Tesco credit card to make a large purchase from a reputable company? For example, does it offer more insurance? I will be making a large purchase soon so wanted to check.
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Comments
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The Tesco credit card will offer Section 75 protection.Presumably you would not be borrowing from Trading 212, so Section 75 cover would not apply.0
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I think section 75 covers for any purchases costing between £1 and £30,000 but applies even if you buy one penny of the purchase on the credit card. (Double check this obviously). So if you can split the purchase to put one penny on the credit card and the rest on the other card, you'll have the benefits of both.Statement of Affairs (SOA) link: https://www.lemonfool.co.uk/financecalculators/soa.phpFor free, non-judgemental debt advice, try: Stepchange or National Debtline. Beware fee charging companies with similar names.0
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kimwp said:I think section 75 covers for any purchases costing between £1 and £30,000 but applies even if you buy one penny of the purchase on the credit card. (Double check this obviously). So if you can split the purchase to put one penny on the credit card and the rest on the other card, you'll have the benefits of both.
Sam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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Nasqueron said:kimwp said:I think section 75 covers for any purchases costing between £1 and £30,000 but applies even if you buy one penny of the purchase on the credit card. (Double check this obviously). So if you can split the purchase to put one penny on the credit card and the rest on the other card, you'll have the benefits of both.1
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The other major caveat is that an individual item you are claiming for must be between £100 and £30k.So if you buy 4 airline tickets at £80 each totalling £320 then these are not eligible for S75 because each individual item is less than £100.Having said that I have no ideal if you buy 2 individual items say for £20k each, whether the £40k would be claimable under S75.Also remember S75 is paid by the credit card company. So some credit card companies make it difficult to make a claim.Chargeback (available on debit and credit cards) retrieves the money from the merchant's bank account. But merchant has a right to dispute the chargeback so if they are successful you card is billed again. But card companies much prefer chargeback because the money is coming from the merchant and not themselves.I don't see S75 as a dispute resolution service. You should first try and square things with the merchant and if that doesn't work, then go to your card company. This also applies to chargebacks.1
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