I need to borrow 5 grand, what is the most cost effective way?

isley_2

HI,
I have had some great advice recently from you helpfull people on this forum and back for more advice. I have read through the other main pages on the sit and am a bit baffled with too much info. Could someone advise me on the most cost effective way to borrow £5000. It is for a new van for my new business. I have filled in an online quirie and now am bombarded with offers for a loan that seem very expencive. I know that I have probably done the wrong thing even approaching these people but it was just a quirie to find out how much it would cost me. Is there a cheaper option through credit cards or a bank loan etc. What do you guys think is thee most sensible way to do it. Thanks

Isley.

nomoneytoday

A loan through https://www.moneysupermarket.com can be yours from 4.8% apr upwards

Nienna_2

If you can, get a 0% on purchases credit card, pay for the van and cut the card up to prevent temptation.

This could then give you around a year of free borrowing depending on the cards terms.

When the year starts coming to an end,check https://www.moneysupermarket.com (as suggested above) for a cheap loan to transfer it to. Alternatively try getting another 0% card and transfer the balance.

There is an element of risk to this of course - once you have the first 0% card you then have to try and find a cheap loan or transfer the balance. And make sure you make a decent monthly payment each month (try thinking how many months you want the loan over and then divide that by the loan amount and pay off that amount each month in the first year) or you could get to the end of the year having paid off a very small amount.

Also do you have a business account at your bank? Talk to your business manager. They may be able to offer you a better deal at business rates.