best £2,000 loan?

mutty_hc

Hey. I need to take out a 2000 pound loan.

I've been reading the website and it would seem that taking out a credit card at this level of loan would be the best thing to do since I can get a lower interest rate?

I want to pay it off over 2years. So I'm thinking the MBNA credit card with 5.9% would be best?

My credit rating is good so I'm hoping it will be ok to take out.

Are there any other options I should consider?

Thanks.

Rafter

mutty,

A life of balance credit card could be cheaper than a structured loan - particularly for loans below £5000 where loan rates are less competitive.

You just need to follow the golden rules.

Don't use credit card cheques and make sure the purchase or transfer you are making qualifes for the lower rate.

Don't use the card for purchases or cash advances - generally these will be at a higher rate and the 'payments hierarchy' will make sure the lowest rates are paid off first.

Make sure it is a rate for life and that MBNA can't just raise the rate at will.

Watch out for balance transfer fees - these can often be quite a big percentage of the balance.

Make sure you can actually get the funds where they need to be. If you can only use the credit card for purchases, can you put enough 'normal' spend on the card to raise the £2,000 you need?

Good luck

R.