Unsecured Loan vs Credit card

jaykez

This a follow up to a post i made a while ago about getting £1500 for a car.

I got a new job which i must have a car for.

I explored the credit card route, but a lot of car traders, and obviously private sellers. don't accept them. So i'll need hard cash.

And From what i can understand you can't actually withdraw money off a credit card? like you can with your own bank account.

I've been to both my banks today for an overdraft and i am not eligible.
I am self-employed but have been working part-time and irregular hours for the last year, so my accounts have been fluctuating. Dipping in and out of my authorised overdraft.

But this new job is full time with a good fixed annual salary. So i can pay back the £1500 in a flash.

So it has come down to a straight choice between unsecured loan vs credit card.

Which do you think would be best?

My credit score is good , the only stain is i am not on the electoral roll.
No missed payments, CCJs....etc.

Shall i take a copy of my offer letter or any other documents when i come to apply for the credit card/loan?

Thanks

mumtomany_2

I beleive that you can indeed have cash from a Credit Card BUT the interest payable on the cash is normally higher than purchases.

You need to check how much the APR on the credit card cash withdraws are and compare it to the APR on a loan.

Tixy

Not being on the electoral roll will be a major issue to any new crdit.

You say it comes down to a credit card or loan - but a credit card isn't really an option as it would be very very expensive to withdraw cash on it (unless is a super balance transfer card). Do you already have a credit card? Have you ever had one before?

What credit history do you have aside from your overdraft?

If you are only just starting your new job that is also likely to count against you, its a sign of instability as people often have probation periods etc to start with.

Maybe you could see if your employer would consider you giving you a small loan to buy a cheap runaround, which you could pay back out of your first few months pay packets?