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    Advice please on credit cards - I want to buy a used car but don't want an expensive loan...

    Hi,

    Right, I've never been a fan of credit cards but thinking about it, they can come in handy. I want to buy a used car from a dealer, a cc would give me better protection in case things go wrong. Also, I cannot afford to pay cash and I don't fancy an 8% personal loan. Plus I can pay off CC balance early without incurring penalties.
    I was thinking...if I got one of those 0% on purchases for 6 months cards, then within the 6 months I transfer the balance to a 0% on balance transfers card (3% fee). Obviously the car dealer might charge me 2% or so for the privilege of me using a CC.
    But surely this would be the cheapest way of financing my car? I would obviously make sure to pay the balance off before the high APR kicks in.
    As I unfamiliar with CCs, I'm not sure if I would be allowed to put an £8000 car on plastic? We have an average income, very good credit history. Anyone have an idea of what the maximum is I can put on a card in a single transaction?
    Ta very much

    6 Comments

    8000 may be a bit much, but you could get a cheap overdraft on your current account, and then get a credit card with 0% on new purchases for 12 months. go to moneysupermarket.com and find teh cards that are offering this atm, however due to the credit crunh there may not be too much about atm

    Original Poster

    Cheers. Yeah, thought it might be a bit much. Might have to juggle a bit with overdraft + CC.

    Although in the present climate the odds might be in your favour, when I have tried to do this in the past many traders limit what can be put on a cc to around £2000, the rest has to be paid by other means. I assume that this is down to the fees they need to pay.

    do a balance transfer from your Credit Card to your bank account and use your debit card for purchasing the car, that way there is no 2% surcharge for payment by the Car Company and you still get the advantage of the 0% balance transfer from the Credit Card. Credit Cards usually allow you up to 95% of the credit limit including the fee using balance transfer, so if the credit limit was £5,000 then you would be able to do a b/t of £4,750 (including b/t fees). Cheers.

    Original Poster

    Thanks all, rep on its way

    I think you will be hard pushed to find a cc company that will give you a £8000+ limit as soon as you sign up with them.
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