Cash, interest-free credit or plastic for £2K purchase?

kista

I'm looking to buy an item for just over £2K. The retailer has given me two options to buy the item with:

1. Interest-free credit to pay the full RRP over 6 months to 36 months;

2. 10% discount off RRP and pay the full discounted amount on collection of the item.

The discount option gives me over £200 off the item but i'd need to pay the full discounted amount in one go. The disadvantage is that i'd need to use a credit card and then pay off the credit card over 2-3 months.

The interest free credit requires me to repay the full RRP but I can pay it off over many months or overpay and pay off the full amount as soon as I want. The disadvantage is another credit check.

I suppose my third option would be to transfer the £2K to my current account from a savings account, pay using a credit card (to get my airmiles and the 10% discount off RRP) and then pay off the credit card as soon as the statement comes in and then build up the savings account over a few months to replenish the transferred £2K.

So, what would be the best way to buy this item assuming the options above?

izools

I think your latter option of using your credit card for the miles, paying it back in full from your savings, and replenishing your savings at whatever rate you can afford, is an excellent idea and a great option IMHO.

Saves taking out credit, paying any interest, or being subject to a credit check.

Everybody wins!