Credit card or Loan

Redrose

Hi all

Hope this is in the right place to post, but iam looking for the best way to pay for a holiday - Worked out i need about £1000.

What is the cheapest way to pay for this either

apply for a loan or a credit card

Never had a credit card so not sure if this is a good idea, but heard people saying that they just "put it on" thier card.

Hope you can help.

Thanks

Di

The_Boss

You might not be able to get either since you dont appear to have had any credit history.

I'd say a credit card would be better since loan lenders tend to charge fairly high rates on smaller fees, whereas you might be able to get a 0% on purchases deal on a credit card. Whether you would get a high enough limit or whether you would be accepted is another matter. Who do you bank with? It might be best to apply for their credit card.

Redrose

Hi The Boss

I bank with the Abbey have done for years - would you recommend trying them first.

Di

The_Boss

Hmm, well that makes it a bit more tricky since the Abbey card is through MBNA and so there is less a chance of them accepting you.

I'd go for Capital One or Barclaycard personally, though they do not have 0% on purchases. Sainsburys I believe do, so maybe try applying through them and if that doesnt work then try Barclaycard.

Redrose

Thanks for the advice but who is MBNA ?

The_Boss

MBNA are a lender who back a large number of accounts - for example Alliance and Leicester, Abbey, bmi, Conrad, Virgin and others. They are separate from the company whose name the card has.

This is opposed to, say, HSBC, NatWest (through Royal Bank of Scotland link up) and Halifax, whose cards are all backed by the bank, and so can use your current and past dealings when making a decision. Because of this, it is normally easier for NatWest and Halifax customers to get a card through their own bank.

jay78

Redrose wrote:

Hi all

Hope this is in the right place to post, but iam looking for the best way to pay for a holiday - Worked out i need about £1000.

What is the cheapest way to pay for this either

apply for a loan or a credit card

Never had a credit card so not sure if this is a good idea, but heard people saying that they just "put it on" thier card.

Hope you can help.

Thanks

Di

Hi there, did you have any success with your applications?