Credit Cards or Loan - Which is the better?

Lizy72

Hi,
Does anyone know which is best Credit Card or a small loan?

I need to repair my beloved car which needs a new gear box and the clutch will need replacing at the same time! The repair costs could potentially cost up to £1200.

The car is still driveable but it will need doing before it causes anymore problems in any other gears. I don't want to get rid off the car plus don't want to take finance for a new car when I own it out right.

Your help would be much appreciated to determine which option is more finanacially viable?

Fruit_and_Nut_Case

Welcome to MSE :wave:

How long is a piece of string? We need more information. Do you already have a credit card or cards? Were you thinking of applying for a new one especially for this expense? How is your creditworthiness? Does the repairer accept credit cards (without adding a premium)?

The ideal solution would be to successfully apply for a new card giving 0% on purchases for a year or so. Then you could use this to pay for the repair and pay the card off within the 0% period. And have the willpower not to use the card for anything else in the meantime.

Lizy72

No, I have no credit cards and haven't had one for nearly 10 years. I don't really want one or to take a loan but needs must. Its just unfortunate that the repairs need doing. But when the repairs cost less than the car is worth it makes sense to repair it rather than get into debt for another car.