Best credit card solely for Section 75 protection

NotArobot24

I do not have a great credit record, I got into a lot of debt many years ago and vowed to never get one again.

However, I hear on consumer shows the value of Section 75 protection for purchases over £100 and below £30,000 so I am considering getting one just for that protection.

Considering my lack of credit record except for energy and an unused overdraft is there a good card that can be recommended for people in my position.

I am disabled and on benefits, I do not mind if there is a high interest rate as I plan to pay off anything I buy on it within the first month.

I have not made any big purchases for many years as I tend to just use family hand me downs or Freecycle, but things are wearing out so I can imagine needing a new Washing Machine and some other items in the next 12 months. 

MyRealNameToo

Its section 75 of the consumer credit act, its a legal requirement for anyone offering regulated lending to consumers so in principle there is no difference in S75 between the different card providers. 

Generally you are best off either looking to your current bank, you say they gave you an overdraft so clearly they have gotten comfortable lending to you in the past. Alternatively there are those aimed at the subprime end of the market like Aqua, Vanquish, Cap1 etc. Interest will be higher and limits lower but if you pay off the statement value in full each month interest rates are irrelevant. 

For the avoidance of doubt, its the items value that must be between £100 and £30,000, as long as some is paid by credit directly to the supplier then S75 applies to the full value. That said not all shops will support paying £5 on credit card and £2,994.99 in cash

Grumpy_chap

Any CC has to provide S75 protection.  There may be variances in how the different providers administer the scheme / ease of claiming.

Your priority should be a card with zero fee and the best rewards available given you state that you will pay the balance in full each month so interest rate is not a concern.  Your credit history may impact the choice of cards available to you.

Remember, also, that S75 is not a wonderful and easy panacea.  It only makes the CC jointly and severally liable for your rights as the retailer is liable.  You cannot claim under S75 unless there has been some breach by the retailer.  CC providers will often request that you have sought to resolve via the retailer first.  When that has not been satisfactory, a claim against the CC will often be processed under a voluntary process called "chargeback" before processing an S75 claim.  Chargeback is a bit like stopping the cheque and the retailer can reverse the chargeback or still pursue debt recovery via other processes.  When a CC accepts that an S75 claim may have arisen, there will usually be a detailed process before the CC actually processes the S75 payment.

The best form of protection is to chose a reliable and trusted retailer in the first instance.

eskbanker

NotArobot24 said:

I do not have a great credit record, I got into a lot of debt many years ago and vowed to never get one again.

However, I hear on consumer shows the value of Section 75 protection for purchases over £100 and below £30,000 so I am considering getting one just for that protection.

Considering my lack of credit record except for energy and an unused overdraft is there a good card that can be recommended for people in my position.

I am disabled and on benefits, I do not mind if there is a high interest rate as I plan to pay off anything I buy on it within the first month.

I have not made any big purchases for many years as I tend to just use family hand me downs or Freecycle, but things are wearing out so I can imagine needing a new Washing Machine and some other items in the next 12 months. 

https://www.moneysavingexpert.com/credit-cards/bad-credit-credit-cards/ will be worth a read.