Credit Card or Interest Free Credit

What is better for me for a £1600 purchase?

Apply for a new credit card with the post office 25 month interest free or the company is offering 12 month interest free credit? I can afford the repayments over both durations.

Which is best option? Is there any benefit one over the other or does one effect my credit rating more than other?

Any help welcome.



  • The CC might look a little worse, if the card limit isn't much above £1600, since it will be close to maxed out.

    That said, the monthly payments will be a lot lower on the CC, at £64, compared to £133-33 for the loan.

    Would £133-33 per month be easily doable, or cutting it fine?
  • plunt
    plunt Posts: 525
    First Anniversary Combo Breaker
    well if you stick it on the credit card you can do the minimum repayment each month and keep the rest in savings which will help offset some of the balance when you come to pay the remaining at the end.

    Personally i would find a 25 month 'loan' fairly annoying as it drags out for such a small amount, and who knows what you may want to do at that stage.

    a 12 month loan does mean your credit file in 18 months may look better as shows you can repay debt and you have done so!

    also check if you can get a discount by taking up their credit option, or if you can get a discount by paying for it upfront. (depends on what you are purchasing!) some providers will also charge you a fee if you use credit cards...
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