Can several cards be used to buy a car? Can several cards be applied for at once?
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Tunstallstoven
Posts: 997 Forumite
in Credit cards
Hi all
I'm asking this on behalf of a friend as he knows I'm an MSE fan!
:beer:
He'll be looking to buy a car soon at around the £15k mark. He's thinking of using credit cards at 0%, paying off as much as possible each month, and balance transferring what ever is left when the 0% is up. A few questions if I may on his behalf please....
1. What's the best way to find out what kind of credit limits he may be offered? Would the limits he is currently being offered by the people he banks with and has a CC with be indicative of what new banks might offer?
2. How much does each application affect his credit score and potential credit limit on subsequent applications? He doesn't want to shoot himself in the foot by getting the poorest credit limits on his first applications!
3. I guess this also applies even if the first application is a good one and he takes it. If it isn't enough and he needs to apply for another (or more than one more) will the fact he's just taken out the first one affect the next applications?
4. On a more practical note, is it usually possible to pay for a car across two or more CCs? Do dealerships allow this?
Many thanks for any insights
I'm asking this on behalf of a friend as he knows I'm an MSE fan!
:beer:
He'll be looking to buy a car soon at around the £15k mark. He's thinking of using credit cards at 0%, paying off as much as possible each month, and balance transferring what ever is left when the 0% is up. A few questions if I may on his behalf please....
1. What's the best way to find out what kind of credit limits he may be offered? Would the limits he is currently being offered by the people he banks with and has a CC with be indicative of what new banks might offer?
2. How much does each application affect his credit score and potential credit limit on subsequent applications? He doesn't want to shoot himself in the foot by getting the poorest credit limits on his first applications!
3. I guess this also applies even if the first application is a good one and he takes it. If it isn't enough and he needs to apply for another (or more than one more) will the fact he's just taken out the first one affect the next applications?
4. On a more practical note, is it usually possible to pay for a car across two or more CCs? Do dealerships allow this?
Many thanks for any insights
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Comments
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I'm not sure there is. I've never known eligibility calculators to show such a thing. I suppose his current bank's prospective limit would be good for a ball park figure.1. What's the best way to find out what kind of credit limits he may be offered? Would the limits he is currently being offered by the people he banks with and has a CC with be indicative of what new banks might offer?
Again, there are no definite answers, as it's more an art than a science. I'd imagine the impact of applications (Searches) would be negligible.2. How much does each application affect his credit score and potential credit limit on subsequent applications? He doesn't want to shoot himself in the foot by getting the poorest credit limits on his first applications!
The search should show right away to the other provider, but *I THINK* the open account doesn't show for a good few days. It certainly has been that way for me in the past. Of course, your friend would have to disclose current credit as part of any application, which should include the newly opened card.3. I guess this also applies even if the first application is a good one and he takes it. If it isn't enough and he needs to apply for another (or more than one more) will the fact he's just taken out the first one affect the next applications?
I've funded cars with cards previously and have always found the dealerships very reluctant to take anything other than a deposit by credit card. I've managed to pay in full by credit card, but only when being up front about it and including this 'clause' within the negotiations on price and my acceptance to buy the car.4. On a more practical note, is it usually possible to pay for a car across two or more CCs? Do dealerships allow this?Whilst my posts do not constitute financial advice, I am always, without fail, 100% right!
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Answers below in bold for your "friend"Hi all
I'm asking this on behalf of a friend as he knows I'm an MSE fan!
:beer:
He'll be looking to buy a car soon at around the £15k mark. He's thinking of using credit cards at 0%, paying off as much as possible each month, and balance transferring what ever is left when the 0% is up. A few questions if I may on his behalf please....
1. What's the best way to find out what kind of credit limits he may be offered? Would the limits he is currently being offered by the people he banks with and has a CC with be indicative of what new banks might offer?
Not until you apply and are accepted will you find out the limit
2. How much does each application affect his credit score and potential credit limit on subsequent applications? He doesn't want to shoot himself in the foot by getting the poorest credit limits on his first applications!
Your credit score/rating is not a real thing lenders use so you can safely ignore it
3. I guess this also applies even if the first application is a good one and he takes it. If it isn't enough and he needs to apply for another (or more than one more) will the fact he's just taken out the first one affect the next applications?
Possibly yes - too many searches and applications in a short space of time will make lenders nervous
4. On a more practical note, is it usually possible to pay for a car across two or more CCs? Do dealerships allow this?
Some do. Some don't. It's finding a dealer willing to sit and process each card which they have the right to refuse
Many thanks for any insights0 -
Why not save for the car instead of entering years of debt across several cards? - Mentality nowadays
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Yeah, this is really not how credit cards are supposed to be used. The only reason for doing this would be to collect points or cashback on a rewards card. And even then you should have the money to pay it off in full.0
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Answers below in bold for your "friend"
Honest guv, honest.Why not save for the car instead of entering years of debt across several cards? - Mentality nowadays
It just makes more sense for him to do it this way.this is really not how credit cards are supposed to be used.
I beg to differ. The question of whether it is possible or not is one thing (and the thing I wasn't sure about which is why I came here). But as to whether it makes financial sense? I think it does, so long as it is affordable. Way back when interest rates were actually worthwhile, I credit card tarted for years and I would guess made a profit well into the £thousands.
Many thanks for all the replies, there's some really useful info in there.0 -
Why not save for the car instead of entering years of debt across several cards? - Mentality nowadays
That is a reasonable suggestion but (and assuming we're talking about a new car) by the time you've saved anywhere near enough, the price of the car will have gone up and you won't be able to afford it unless you save for longer - when it will have gone up again.
The saving grace for OPs friend is that he's trying to do it on 0% cards. Frankly, I'd say he has little to no chance of getting a dealer to do what he's asking - even if he is successful in getting the required number of cards with the right amount of available credit (which is also unlikely).
Still, there's nothing wrong with trying to buy a car on finance at 0%. Some dealers actually offer 0% finance (if the deposit is high enough) so that may be a better way forward.0 -
applications are reported instantly, so it depends on how many cards would be needed. When applying for 3rd, 4th ... would it flag up and issue a decline or at least a review? Also how fast will the 15K be paid off for when it comes to reapply for new cards?0
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Just bought a 2nd hand car for £16k, 1/3 trade in, 1/3 cash (debit card) and 1/3 0% CC which gives me 24 months to pay it off which I've budgeted to do in less than a year. I told garage I wasn't interested in their credit during the negotiation, that is their business nowadays, credit broker rather than car sales, they were fine about it and had no objection to credit card. Almost came unstuck when I came to pay and didn't remember the pin for 0% card, luckily had enough unused balance on my everyday card to use it then transfer the balance when I got home.0
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