Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • barnstar2077
    • By barnstar2077 12th Oct 19, 5:54 PM
    • 222Posts
    • 364Thanks
    barnstar2077
    Is a credit card the right way to spread transport costs?
    • #1
    • 12th Oct 19, 5:54 PM
    Is a credit card the right way to spread transport costs? 12th Oct 19 at 5:54 PM
    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
    If you don't have your own plan, then you're following someone else's!
Page 1
    • eskbanker
    • By eskbanker 12th Oct 19, 6:22 PM
    • 11,380 Posts
    • 14,117 Thanks
    eskbanker
    • #2
    • 12th Oct 19, 6:22 PM
    • #2
    • 12th Oct 19, 6:22 PM
    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
    • By Humdinger1 12th Oct 19, 6:37 PM
    • 112 Posts
    • 391 Thanks
    Humdinger1
    • #3
    • 12th Oct 19, 6:37 PM
    • #3
    • 12th Oct 19, 6:37 PM
    Would work offer you an interest free loan? It's quite a common benefit.

    Good luck and keep us posted
    Humdinger
    • barnstar2077
    • By barnstar2077 12th Oct 19, 7:36 PM
    • 222 Posts
    • 364 Thanks
    barnstar2077
    • #4
    • 12th Oct 19, 7:36 PM
    • #4
    • 12th Oct 19, 7:36 PM
    Would work offer you an interest free loan? It's quite a common benefit.

    Good luck and keep us posted
    Humdinger
    Originally posted by Humdinger1
    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.
    If you don't have your own plan, then you're following someone else's!
    • Ben8282
    • By Ben8282 12th Oct 19, 8:33 PM
    • 3,563 Posts
    • 1,970 Thanks
    Ben8282
    • #5
    • 12th Oct 19, 8:33 PM
    • #5
    • 12th Oct 19, 8:33 PM
    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
    • By eco_warrior 12th Oct 19, 8:52 PM
    • 515 Posts
    • 236 Thanks
    eco_warrior
    • #6
    • 12th Oct 19, 8:52 PM
    • #6
    • 12th Oct 19, 8:52 PM
    0% is the way to go

    That said, the interest on 900 isn’t much anyway. Imo
    • Zero Sum
    • By Zero Sum 12th Oct 19, 8:52 PM
    • 1,287 Posts
    • 1,006 Thanks
    Zero Sum
    • #7
    • 12th Oct 19, 8:52 PM
    • #7
    • 12th Oct 19, 8:52 PM
    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
    • By phillw 13th Oct 19, 9:34 AM
    • 2,951 Posts
    • 2,422 Thanks
    phillw
    • #8
    • 13th Oct 19, 9:34 AM
    • #8
    • 13th Oct 19, 9:34 AM
    0% is the way to go

    That said, the interest on 900 isnít much anyway. Imo
    Originally posted by eco_warrior
    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.
    • nic_c
    • By nic_c 13th Oct 19, 10:12 AM
    • 2,131 Posts
    • 1,113 Thanks
    nic_c
    • #9
    • 13th Oct 19, 10:12 AM
    • #9
    • 13th Oct 19, 10:12 AM
    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.
    Originally posted by Zero Sum
    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.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,966Posts Today

7,459Users online

Martin's Twitter