Interest free credit cards

[rfisher]

Can you use an interest free credit card to buy a car privately through Paypal?

Would that be seen as a cash advance by the cc company and therefore not qualify for the 0% interest offer?

Presumably you would have to factor in the Paypal fee (around 4% IIRC).

Ta.

[CerbitonFlyer]

I don't see why not. A purchase via PayPal is not seen as being a cash advance (at least not by my credit card provider (MBNA)), so yes you should benefit from the 0% rate, although as you rightly state, the recipient of the funds would be charged approx 4% handing fee

[rfisher]

So what's the best way to pay these 0% cards off?

Can you just pay the full amount at the end of the 12 months or is it better to pay it down over 12 monthly installments?

Or do you have to pay a minimum amount each month to keep the 0% deal?

[Mojooo]

You have to pay a minimum each month which is usually around 5%

You can be liable to lose the interest free if you miss a payment.

Bear in mind if you pay with paypal you dont get section 75 protection like you do with other credit card purchases as you are obviously paying with paypal and not your cc. for that alone i would try to use the cc directly if the car costs between £100 and £30, 000

[CerbitonFlyer]

What does section 75 protection give you?

Edited by CerbitonFlyer on Thursday 2nd September 08:55

[audidoody]

CerbitonFlyer said:

What does section 75 protection give you?

Edited by CerbitonFlyer on Thursday 2nd September 08:55

Refund if the merchant is unable to supply the service/goods paid for

[hyperblue]

rfisher said:

So what's the best way to pay these 0% cards off?

Can you just pay the full amount at the end of the 12 months or is it better to pay it down over 12 monthly installments?

Or do you have to pay a minimum amount each month to keep the 0% deal?

Put the minimum payment on direct debit so you never miss it. Then put aside 1/12th of the total each month in a savings account/ISA earning some interest, then pay it all off in the 12th month.

[Mojooo]

Section 75 gives you extra protection should something go wrong, the CC company is as liable as the car trader

http://www.financial-ombudsman.org.uk/publications...

I would addd though that i imagine a small propertion of peopel buy cars on CC and car issues are quite difficult so it wouldnt surprise me if the CC company didnt have a clue what to do should a problem arise but the protection is there though.

[rfisher]

You should still be protected if the card is set up to use with Paypal and the nominated address has been verified.

I use a credit card by default for Ebay Paypal payments as I then have an extra option to get my money back when an Ebay purchase goes mammary up.

Think I'll add a 0% card as well.

Just need to make sure I pay 4% less for the car in the first place, then include that 4% in the payment to the seller.

Not sure a seller is going to be happy to receive a car payment via Poopal though.

May need a bit of a tickle.

[Mojooo]

i am pretty sure paypal is not covered by section 75 because you not actually using the car to pay for the goods, you are using paypal

http://whatconsumer.co.uk/paypal-chargeback/