Low Rate Credit Card VS Loan

frugalscrooge09

Hello all ,never posted before so here goes!


I'm hoping to buy a car and need to borrow about £6K. Should I use a low rate credit card APR 6.8% or apply for a loan for this amount? I think the best rate is 7.9 % ( If I even got that rate ). Have checked credit rating and its excellent. Also if i took out the credit card, is there any way of working out how much I'd be paying and how long it would take to clear off at ?? £150 per month??

Hope this isnt a daft question and is posted in the right place!

Thanks

YorkshireBoy

frugalscrooge09 wrote: »

Should I use a low rate credit card APR 6.8% or apply for a loan for this amount?

6.8% will become (at least in the first year) 8.8-9.8% once the dealer has added his 2-3% charge for using a credit card.

Have checked credit rating and its excellent.

In whose opinion?...that of a credit reference agency or the people who will actually be providing the credit facility?

Also if i took out the credit card, is there any way of working out how much I'd be paying and how long it would take to clear off at ?? £150 per month??

http://www.makesenseofcards.co.uk/calcpay.html

CannyJock

I'd add to YB's reply that it depends how quickly you can repay the credit card (and you might need a bit of luck on getting the amount of credit you need).

In theory you could get a Virgin Money card, transfer up to 95% of the credit limit direct to your current account, paying a 4% fee for the 16 month period (equivalent to 3% APR). You can then pay by debit card and avoid any other fees.

The fee the car dealer charges you can negotiate, I recently talked a car dealer into taking £ 3k from my credit card without a fee and the balance on my debit card.

frugalscrooge09

Hello Again,

thanks for the quick replies CannyJock and YorkshireBoy. Think i need to shop about a bit more before i decide!