Should I use a credit card for a larger purchase?

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.

Comments

  • Gerry1
    Gerry1 Posts: 10,840 Forumite
    Part of the Furniture 10,000 Posts Name Dropper

    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.
  • kimwp
    kimwp Posts: 2,605 Forumite
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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.php

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  • Nasqueron
    Nasqueron Posts: 10,450 Forumite
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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.
    This is mostly correct, it's £100-£30,000 for S75 but otherwise fine - 1p on a card will provide S75 cover provided the other rules apply e.g. buyer/credit card firm/supplier link is present. There are caveats on paying though, some ways like PayPal may break the chain and a secondary card holder may not have cover either

    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.

  • DullGreyGuy
    DullGreyGuy Posts: 17,256 Forumite
    10,000 Posts Second Anniversary Name Dropper
    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.
    This is mostly correct, it's £100-£30,000 for S75 but otherwise fine - 1p on a card will provide S75 cover provided the other rules apply e.g. buyer/credit card firm/supplier link is present. There are caveats on paying though, some ways like PayPal may break the chain and a secondary card holder may not have cover either
    The other major one is agents/subcontractors etc... payment has to be made to the supplier of the product/service not an intermediary (eg buying on Amazon Marketplace, using a travel agent etc)
  • lr1277
    lr1277 Posts: 2,076 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    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.
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