Credit Card or Loan ?

bcfclee27

Hi just booked a honeymoon in Barbados through Virgin Holidays, the cost of the holiday is £5k.

I need to pay this off in next couple of weeks and will need to use a loan or credit card to achieve this in short term however with overtime and selling motorbike i should be able to pay this all off within 6 months.

Question is it better for me to do it on credit card or loan.
If i take out card Virgin will charge me 2.5% so what i plan to do is to pay off as much as poss before deadline as say 2.5% charge will be lower the lower the final balance is.

This seems to be the most sensible as i can get a credit card with 12 months 0% on purchases. So the only cost to me will be the 2.5% on whatevers left to pay.

It sounds to me that credit card will be best option but just wanted to check with you guys and ur experience.

Many thanks
Lee

blitzboy

As long as you are confident of paying it off before the 0% deal expires then yes I would agree with you that a credit card is the best option as the fee Virgin charge for paying by card will be a lot less than APR on a loan.


P.s - Any room in your suitcase for me?

bcfclee27

blitzboy wrote: »

As long as you are confident of paying it off before the 0% deal expires then yes I would agree with you that a credit card is the best option as the fee Virgin charge for paying by card will be a lot less than APR on a loan.


P.s - Any room in your suitcase for me?

LOL thanks blitz, unfortunately dont think the mrs would be too happy with that.

Just to check if i did take a credit card ie Virgin do a card with 0% on purchases for 12months, i take it there are no other hidden charges etc.

I have never had a credit card before and am a bit scared/wary of them. I plan to pay the balance off soonish as will be selling motorbike and have done plenty of overtime etc. So balance should be paid within 6ish months.
I just wanna check that the only charge i get is the 2.5% thatVirgin holidays will charge me for using a credit card and there are no other hidden charges etc ?
obviously as long as i pay it all off within the 12 months ?

Many thanks
Lee

blitzboy

bcfclee27 wrote: »

LOL thanks blitz, unfortunately dont think the mrs would be too happy with that.

Just to check if i did take a credit card ie Virgin do a card with 0% on purchases for 12months, i take it there are no other hidden charges etc.

I have never had a credit card before and am a bit scared/wary of them. I plan to pay the balance off soonish as will be selling motorbike and have done plenty of overtime etc. So balance should be paid within 6ish months.
I just wanna check that the only charge i get is the 2.5% thatVirgin holidays will charge me for using a credit card and there are no other hidden charges etc ?
obviously as long as i pay it all off within the 12 months ?

Many thanks
Lee

There are no hidden charges no. The only thing you would be charged for is missing a payment so its always best to set up a direct debit for the minimum payment each month if possible.

So if you take a 12 month 0% deal then as long as you have cleared the balance in 12 months you wont be charged a penny from the card company.

Have a good honeymoon, i'm sure you will.:)

blacksta

cOMPUTER says NO

yIKESS 5k holiday - i thought we were in a recession.