Loan or Credit Card?

Hill_Top_-_NBFC

I have a Virgin credit card with no outstanding balance. I have a mortgage of around £75K and I have had it for 5 years without a single missed payment. I work in the gas industry and even within this current recession, my job appears to be secure as my employer has plenty of work to be getting on with.

I am interested in changing my car. I'm not looking to borrow any more than about £3500 to £4000 at the most. I keep seeing loan rates of around 12%, then I see the Barclaycard Simplicity with a rate of 6.8%. Am I missing something or could I apply for this card buy a £4000 car on it and pay on this rate for the 2 to 2.5 years I would need to? Or would I be better off with a fixed, but higher rate personal loan?

Many thanks for anyone's help!

IWantToBeFree_2

In the current climate you would be better off saving until you can afford to change your car.

Moggles_2

A life-of-balance card would charge a fixed interest rate for the life of the purchase transactions/balance(s) transferred.

With Barclaycard Simplicity, the your standard APR (currently 6.8% typical) is subject to status and variable. This means B'card reserves the right to raise your standard rate at any time. :eek:

Brian_Bullocks

Hill_Top_-_NBFC wrote: »

I keep seeing loan rates of around 12%, then I see the Barclaycard Simplicity with a rate of 6.8%. Am I missing something or could I apply for this card buy a £4000 car on it and pay on this rate for the 2 to 2.5 years I would need to? Or would I be better off with a fixed, but higher rate personal loan?

Looks like a good deal, if it is for the life of the balance, and you NEVER miss a payment (use a DD mandate). Most personal loans are more than 6.8%.