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Original poster

would you buy a car with a credit card?

37 replies

chocolatelife · 24/04/2015 08:01

I wasnt intending to but when online applying for loan, which was rejected, the advisor said Yes of course.
Now I have an old credit card that I havent used in a long time. Would it be a good idea to reactivate it and buy a second hand car?

OP posts:

thatstoast · 24/04/2015 08:04

Have you worked out how long it would take to pay it off?

FuckYouChrisAndThatHorse · 24/04/2015 08:05

It depends if you're good with money. I would never reactivate an old card. You need an interest free for at least 18 months. Is your credit good? Could you cover a balance transfer fee at the end of that time? How long will it take you to pay it off? Can you stick to a strict timetable of your own making?

If you're not someone who hates debt and gets rid of it quickly I wouldn't.

Theoretically you can get an interest free loan if you're careful. But if you mess up the interest you could end up paying would be enormous compared to a loan.

If you've been rejected for a loan your credit rating may not be good enough for a good interest free CC.

mousmous · 24/04/2015 08:05

short answer: can you afford repayments? more than minimum, proper repayments?
if yes, then I would.

Original poster

chocolatelife · 24/04/2015 08:08

i will have to afford repayments.
currently am paying for bus
instead i will have to pay for insurance, petrol and repayments - it will be more
but the world will open up for me and my DC

OP posts:

Higheredserf · 24/04/2015 08:10

This reply has been deleted

Message withdrawn at poster's request.

spad · 24/04/2015 08:12

What if someone bashes into you the day you buy it? And your car is no good anymore? What would happen then?

Higheredserf · 24/04/2015 08:15

This reply has been deleted

Message withdrawn at poster's request.

Fairylea · 24/04/2015 08:15

Make sure you have the best interest rate you can. Look at getting a new card with 0% interest.

I'd also do a whole budget revamp to check you can afford the repayments. You will also need to put some money aside as extra to save for any repairs you may need to make as and when otherwise you will find yourself seriously stung.

ginmakesitallok · 24/04/2015 08:15

In your situation- no, never. If you were turned down for a loan then unlikely you'd get an interest free credit card. In the short term a car is much more expensive than the bus.

nottheOP · 24/04/2015 08:16

Why didn't you get the car finance/loan? Can that be remedied?

A credit card can be fine if low rate or nil percent on purchases or something but you have to be able to repay in full before its on the standard Apr which is likely to be very high and an expensive way to borrow.

mousmous · 24/04/2015 08:21

are car sharing schemes an option for you?
from your update it sounds like you can't really afford it tbh.

FuckYouChrisAndThatHorse · 24/04/2015 09:44

If you're just wanting to use a car to escape sometimes, and you are able to use a bus for day to day things, then I wouldn't buy one. Especially if it would stretch you before you've even considered paying for breakdowns (I was really unlucky with my last car, it's been fine in the long term but in the first 6 months it cost me an extra £550 in unforeseen repairs).

If you want one for occasional trips then either a car share or rental would work out a lot cheaper and you'd still have the freedom to escape.

If you don't manage to pay it off in time, or something happens that costs you more, then a credit card debt can become a slowly tightening noose around your neck.

BabyGiraffeOnIce · 24/04/2015 09:50

spad that's what insurance is for?

surely that would be the same question to anyone who buys a car?

specialsubject · 24/04/2015 09:50

given that a car depreciates to zero and costs money while it does it, I would never buy one on finance. You can get reasonable transport for a few hundred pounds, so it would be far better to save up.

timeforabrewnow · 24/04/2015 09:59

Some of us don't have a choice, I would never buy one on finance.

It depends how much you are borrowing. We found that the credit card option couldn't 'lend' us enough money to get the second-hand car we needed. Took out a loan with Tesco instead. The car finance deals that dealerships offer tend to have higher interest rates.

Original poster

chocolatelife · 24/04/2015 16:15

perhaps I am being turned down because I missed a payment in error

I dont have a few hundred pounds, well I do, but it has taken me forever and a day and I didnt want to use it all.
day to day I can get by but dc all need picking up from their jobs etc., and they have to rely on DH who complains

OP posts:

Bearbehind · 24/04/2015 16:20

day to day I can get by but dc all need picking up from their jobs etc., and they have to rely on DH who complains

I'm not sure where to start with that sentence

Your DC's are old enough to work yet you need to go into debt so you can ferry them around?

You are prepared to go into debt to stop your DH complaining?

Seriouslyffs · 24/04/2015 16:23

Babygiraffe insurance would cover accidents but what if the OP puts it on a credit card and the a few months down the line it has £££ mechanical problems?

Seriouslyffs · 24/04/2015 16:26

I've just seen your update and the reason why you need a car... Tosser husbands aside, safe reliable cars can be very cheap. Are you already insured on your DHs car? Adding the insurance of your new car and insuring him on yours can bring it down further for both of you.

BikeRunSki · 24/04/2015 16:32

BabyGiraffe insurance will pay what they consider to be the value of the car, this may not be what was paid for it. Insurance also won't cover the cost of any interest or fees associated with any loans etc.

YDdraigGoch · 24/04/2015 16:32

Youd be unlikely to get a credit card, or be able to eactivate an old one if you've been refused a lian. The loan refusal will show up on your credit history (work in a bank).
If your DCs are old enough to work, why can't they get/pay for bus to work themselves????

Original poster

chocolatelife · 24/04/2015 16:50

buses dont run late enough.
oh, that the credit card company wont let me reactivate. They are always writing to me.
I'm gonna try anyway.
otherwise will try for a loan.
well I feel it is unfair that DH has a car and I have to sit with the students and OAPs on the bus. He gets annoyed at the DC, plus he would be happy if I had a car also. As it happens his may well be destined for scrap anyway. Had a good innings.
I cant drive his, am too scared, it is an automatic.

OP posts:

FuckYouChrisAndThatHorse · 24/04/2015 16:56

Couldn't you drop him where he needs to be and then have the car for the day and pick him up?

YDdraigGoch · 24/04/2015 16:57

The writing to you will be as part of a mass mail shot. You haven't been sent a unique personal letter.

How about getting a loan in your DHs name?

Its really nor a good idea to buy a car on a credit card - you'll end up paying back much more than you paid for the car.

Original poster

chocolatelife · 24/04/2015 17:00

good idea, if DH will agree to it, hmm, you assume he earns more than me perhaps.

thanks everyone for input - i wouldnt have thought about buying such a purchase on a credit card had the online bank not said Yes, and then promptly turned me down anyway.

OP posts:

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