0% interest credit card to buy season ticket?

[Uk125]

hi guys

i have a new job in central london and will be travelling from Folkestone via the HS1 train. the season ticket costs £7848

i have a barclays card that i never use. i know it has high %APR.

should i get 0% free interest for new purchase credit card to buy the season ticket and pay it monthly . any credit card recommendation ?

thanks

 

[mikeg]

Possibly. Also see if your employer offers a season ticket loan. As for which card to get, use a comparison site that does a soft search perhaps? Such as moneysavinyexpert credit club. It'll show your chances of being accepted.

Bear in mind you'll need a decent income and credit rating to get a decent credit limit on a new card and may be seen as higher risk of you've just changed jobs. So I'd definitely see if your employer offers a season ticket loan. Mine does, it's interest free and comes out of your wages

 

[Watershed]

You'll be able to see your eligibility for a 0% card on comparison sites (if you are a sufficiently attractive prospect, some lenders will guarantee approval). However, most lenders won't give you an indication of the credit limit they'll offer until after you've applied, so it's quite possible you won't have a sufficient credit limit to pay it all off in one go.

It might be worthwhile buying the season ticket with a credit card that provides you with points/benefits/cashback, and then paying that off with a balance transfer card (as these seem to be a little more readily available, albeit many charge a fee). But too many applications in a short space of time may impair your creditworthiness (at least for the next 12 months).

 

[Dave W]

mikeg's got in there first but I'll reiterate - it was discussed in another thread recently that a lot of London employers offer some form of interest free season ticket loan. I used to think it was a public sector perk - outside of London it might well be - but I'm in the job market at the mo and a surprising number of private sector businesses include these loans as a benefit, so worth asking before hammering your credit card!

 

[Ken H]

You'll be able to see your eligibility for a 0% card on comparison sites (if you are a sufficiently attractive prospect, some lenders will guarantee approval). However, most lenders won't give you an indication of the credit limit they'll offer until after you've applied, so it's quite possible you won't have a sufficient credit limit to pay it all off in one go.

It might be worthwhile buying the season ticket with a credit card that provides you with points/benefits/cashback, and then paying that off with a balance transfer card (as these seem to be a little more readily available, albeit many charge a fee). But too many applications in a short space of time may impair your creditworthiness (at least for the next 12 months).

Good point about rewards. best I can find is a John Lewis partnership card which gives vouchers to spend in JL/waitrose. But eye watering interest so you will need to transfer the debt somewhere else sharpish.

 

[AlterEgo]

hi guys

i have a new job in central london and will be travelling from Folkestone via the HS1 train. the season ticket costs £7848

i have a barclays card that i never use. i know it has high %APR.

should i get 0% free interest for new purchase credit card to buy the season ticket and pay it monthly . any credit card recommendation ?

thanks

The main sticking point here is whether a credit card company will extend an £8000 credit limit to a new customer.

Many credit and charge card limits are opaque, too - I have an Amex Platinum charge card with no defined credit limit, which I expect is fluid and changes depending on spend, credit, and repayment history.

 

[_toommm_]

Good point about rewards. best I can find is a John Lewis partnership card which gives vouchers to spend in JL/waitrose. But eye watering interest so you will need to transfer the debt somewhere else sharpish.

Nine months interest free if you do go with the Partnership Card - not that I can give out financial advice though.

 

[cornishjohn]

The main sticking point here is whether a credit card company will extend an £8000 credit limit to a new customer.

But any limit might be better than nothing?

Worth remembering that any slip up in payments on a 0% card usually puts you onto quite a high rate too.

Long while since I applied for a card, but last time I did I was awarded 1 yrs salary credit limit (no previous relationship with bank at all). I was also once invited to apply for a credit card with my accounting bank, by that bank, so I did and got rejected! Don't use that bank any more. Hah.

 

[Ken H]

pity the railway dont offer to pay an annual by instalments like insurers do. Mind insurance rates of interest can be a tad high too.

 

[AM9]

pity the railway dont offer to pay an annual by instalments like insurers do. Mind insurance rates of interest can be a tad high too.

Well they do really, just get monthlies. Of course it will cost just like any monthly insurance plan costs more than an annual. Apaort from the Gold Card bit, you do of course get to walk away at the end of any month with no administration costs.

 

[Royston Vasey]

pity the railway dont offer to pay an annual by instalments like insurers do. Mind insurance rates of interest can be a tad high too.

And offer a handy finance option of their own with a reasonable APR. I'm sure plenty would take it. It would be a handy revenue stream, as you say it works for the insurance, motor, electronics, home improvements industries and countless others.

Watch out for GBR Financial Services at Companies House! [/Speculation]

 

[Fawkes Cat]

pity the railway dont offer to pay an annual by instalments like insurers do. Mind insurance rates of interest can be a tad high too.

Already beaten to it by the private sector:

CommuterClub

Example: Save £253 versus Monthly tickets and up to £652 vs. Weekly tickets or Contactless on a Zones 1-6 travelcard. Representative 13.50% APR

 

[A0]

hi guys

i have a new job in central london and will be travelling from Folkestone via the HS1 train. the season ticket costs £7848

i have a barclays card that i never use. i know it has high %APR.

should i get 0% free interest for new purchase credit card to buy the season ticket and pay it monthly . any credit card recommendation ?

thanks

Check out Moneysavingexpert's recommendations for IFC credit cards - also has a checker which will allow you to check your credit rating and therefore likelihood of being accepted for the card and also likely credit limit - which as you're looking at a season ticket which can be a few thousand pounds maybe relevant.

 

[Wallsendmag]

pity the railway dont offer to pay an annual by instalments like insurers do. Mind insurance rates of interest can be a tad high too.

We used to do 4 payments quaterly but it was abused so much we had to stop it.

 

[Wolfie]

We used to do 4 payments quaterly but it was abused so much we had to stop it.

I can see the issue with paper season tickets. You get the ticket, valid for 12 months, up front and then just stop paying. Might work better with smartcards though. If they don't pay the card gets turned off.....

 

[Bletchleyite]

pity the railway dont offer to pay an annual by instalments like insurers do. Mind insurance rates of interest can be a tad high too.

To be honest I think they should switch to monthly direct debits. A cancellation fee would apply (on the same basis as the present partial refund) if you cancelled early.

I can see the issue with paper season tickets. You get the ticket, valid for 12 months, up front and then just stop paying. Might work better with smartcards though If they don't pay the card gets turned off.....

Yes, true, e-tickets or smartcards would solve that.

 

[CyrusWuff]

To be honest I think they should switch to monthly direct debits. A cancellation fee would apply (on the same basis as the present partial refund) if you cancelled early.

Chiltern certainly used to offer direct debit payments through their Business Travel office, but they only issued them as monthly tickets.

Payments were taken around the 20th of the month, with tickets starting from the 1st of the following month assuming the payment cleared.

 

[Ken H]

To be honest I think they should switch to monthly direct debits. A cancellation fee would apply (on the same basis as the present partial refund) if you cancelled early.



Yes, true, e-tickets or smartcards would solve that.

do what council tax do. take 1/10th monthly so always a bit up front. then a 2 month holiday at the end. First instalment by credit/debit card. If DD bounces then you probably have the cancellation fee in the bank. But better still, subcontract the loan part to a 3rd party. railway gets the full fare up front and the lender has the hassle of non-payment.

 

[Haywain]

But better still, subcontract the loan part to a 3rd party. railway gets the full fare up front and the lender has the hassle of non-payment.

How about the customer does that and gets a bank loan or uses a credit card?

 

[iphone76]

When I needed a London ticket, I used to get the AMEX Platinum Credit Card which comes with 5% cash back upto £100 on purchases in the first three months. My ticket was so expensive that I got the £100.

Platinum Cashback Everyday Card | AMEX UK

Apply for an Amex Platinum Cashback Everyday Credit Card and start earning cashback on all your purchases. With exclusive benefits in retail, travel and events.

www.americanexpress.com

I then took out an interest free loan from work and used that to pay off the credit card bill.

 

[westv]

As already mentioned, I would amazed if there was no employer season ticket loan scheme.

 

[RJ]

I’ve done the rodeo with 0% credit cards. If you’re going to do this, my advice would be to rip out the entire credit limit all at once by paying it into a bank account, then set up a direct debit to pay it off monthly.

Make sure that the card is paid off on time every month - it the direct debit fails or you’re late for any reason the 0% promo will be removed and you’ll pay whatever the standard rate is.