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Benefits of having a credit card when buying a car

If you're thinking of buying a car, there are a number of benefits to owning a credit card before you get on the road. Let's go through them one by one.

Paying a deposit

There's a good chance you'll be taking out a loan and paying for the car monthly. And for that you'll need a deposit.

It's always best to have the cash for a deposit upfront rather than getting yourself into two separate debts. But real life sometimes gets in the way, and if your old car finally gives up and you need it for work or some other essential purpose, you might be left with no choice but to put the deposit on credit.

With a long zero per cent credit card deal you might be able to pay off the loan and then pay off the deposit at the end (as long as you stick to your minimum payments). Even better, if you can afford it you can clear them simultaneously.

Paying for the car outright

Not all cars cost many thousands of pounds. Know where to look and you might be able to pick up a bargain and pay for the whole thing interest-free on a credit card.

Getting a service

Some dealers sell cars that have undergone extensive checks and have had a service, but often, you're buying blind (and shock horror – not all car dealers are as honest as they'd have you think). So it's always worth getting the spark plugs, filters and oil changed. If you're a little low on funds, put it on your card and pay it back at your leisure. A good service can save you money on fuel consumption too, so it might end up paying for itself in a few months.

Making initial repairs

There will always be some niggle when you buy a second-hand car. A dashboard light not working. A tyre that's close to failing the 20p test. The radio not picking up Virgin. With a bit of credit, you're good to go.

Joining a breakdown service

While some insurers offer breakdown service as part of the deal, for many of us, joining one of the roadside assistance services is a must. Recovery services usually ask for the whole year’s payment in one go. Why not put it on your credit card?

Paying your insurance upfront

Did you know that when you pay monthly for your insurance, you're effectively taking out a loan and paying interest on it? Pay the whole lot on a zero percent credit card and you'll save money as you pay it off.

Keeping a good credit score

Having a credit card and using it regularly in a responsible manner will help with your credit score, and that means you'll find it easier to get a car loan or finance from your dealer.

Hiring a car

If you're the type of person who likes to shop around for cars, you'll know that dealers always seem to be miles apart. Hiring a car to get you from forecourt to forecourt will save you hours of time, and might help you find a bargain you'd have otherwise missed.

So as you can see, there are many reasons for car-buyers to have a credit card. Apply now to see if you qualify for one of our zero per cent purchase credit cards.