Credit Card or Loan??

Hevv

Evening,

I am just after a bit of advice if anybody could help out that would be great.

Bear with me on this one because all this goes over my head a little bit. . .

Basically I need to but a new car at just shy of £4k. I have no saving so it would have to be a credit card or a loan.

After trawling the internet it seemed like it would be best to get a credit card and then balance transfer it until it has been paid off. However i need the cash in my bank to do a bank transfer as payment for the car.

After looking into it some more it seems you can write yourself a credit card cheque? This would be perfect but it seems you would not be entitled to the 0% APR if you were to request a credit cheque, is this correct?

If this is the case would I just be better off taking out a loan?

Thanks for reading and if you have any insight into this I would be most grateful!

YorkshireBoy

Hevv wrote: »

Basically I need to but a new car at just shy of £4k. I have no saving so it would have to be a credit card or a loan.

If you haven't been saving each month where will the monthly card/loan payments come from? Something will have to give won't it?...unless you're just out of college/first job, or have been unemployed for some time?

However i need the cash in my bank to do a bank transfer as payment for the car.

Take a look at MBNA run cards. They offer a money transfer facility, ie cash into your current account at 0% for up to 20 months for a 4% fee.

Then just BT any remaining debt to a new card at the end of the promo rate period.

This will be the cheapest way to finance your car, although it's also the most dangerous in that if you can't get another BT card in 2014, and have only been paying the £40 a month minimum payment, you're stuck paying circa 18% APR...far more than a decent loan rate.