Barclaycard or Sainsburys loan?

lloydr_2

Hi

Sorry this is a duplicate post (as on e is in the loans section, however it covers loans and credit cards so I am confused where it shoudl go!)

Anyways

I need to borrow £5000 for a car. My old car just blew up (failed MOT) and will cost more to repaire than worth trade-in, also there were loads of warnings on the MOT (faults I don't want to drive the car with and that will deffo be major by next year).

Anyways, I have two options
1. Loan from Salisbury's at 8.8% for 5 years.
2. Pay on 1 Credit card, then transfer the balance to Barclaycard (or transfer in advance), the rates they have quoted me for this are, 2.5% fee and 6.9%APR for the life of the balance.

I have never used the Barclaycard just ordered it last year looking for a 0% deal but got their other offer and forgot to cancel the card!

At the moment I'm leaning towards the Barclay card as I can pay it off a lot quicker if required, and take lower payments should anything arise. I would set up the minimum payment DD and a Standing order from My bank account to pay it off over the 5years near enough.

Does this sound sensible (Barclay card over loan?)? Please no comments on do you really need the car etc, I have had a load of stress recently with Other half and her finances that are back on track so fancied treating myself, and the car is something I have wanted for a while, I tend to keep cars till they drop (see above re: mine failing MOT which is the only reason I'm changing now).

Thanks

L

binaryuniverse

If you think you can pay it back faster then the Barclaycard is definitely the way to go imo. Even with the initial fee it should still work out cheaper over 5 years. Just make sure you pay off a set amount each month o mor eif possible. Paying off just the minimum will cost more.

lloydr_2

That was the plan! I just needed to hear from someone else that it is not madness and that they wont fleece me if I do what I say (DD Minimum and Standing order the rest.).

Cheers

Merry Xmas.

binaryuniverse

Oh btw, have you looked in to getting another card with a long BT offer? If you got something like a Virgin card you could pay the money direct into your bank account (4% fee) and not pay a penny of interest for 16 months.

IWantToBeFree_2

Re paying for the car on a credit card, a lot of dealers won't take credit card payments, and if they do, they may charge a premium (i.e. 2%).

lloydr_2

got to check that. But if they dont then I wont buy!