credit card or loan ?

blueandy5

We have had a quote for replacement windows and doors that come to £7500 I would like to know if we should pay by Credit card or loan ?
We're leaning more towards credit card option.
Any help will be much appreciated.
Regards Andy & Julie.

Ebe_Scrooge

How much will a loan cost you in total ? If you pay by credit card, how soon will you pay it off, and how much interest will you pay ?
Will the company you're buying from accept a Credit Card payment ? If they do, will they hit you with a transaction fee ?

Lots of questions there, until we know the answer we can't advise you.

Some general advice - some retailers will pass on the credit card fee to you - typically 2-3%. But paying by credit card gives you Section 75 protection - if the company doesn't deliver the goods of satisfactory quality, or goes bust, you can get get your money back from the credit card company. To take advantage of the S75 protection, you only need to pay £1 on your credit card, the rest can be "cash" if you want. "Cash" can include a loan for the purposes of S75.

Aside from from the "protection" issue, it's just a simple case of comparing the APRs and total amount repayable of the 2 options. I'd be willing to bet that a loan, for a person with reasonable credit history, is going to be cheaper than a credit card. Get some quotes and do the sums - if a loan works out cheaper overall, then £1 on the credit card for the S75 protection, and the rest on a personal loan.

<Edit> Unless, of course, you've got a credit card that offers 0% on purchases, AND the double glazing company will accept this with no fee, AND you can pay off the CC before the 0% period ends.

bengalknights

Depending on how long you want to spread cost over the cheaper solution is a long term 0% credit card

blueandy5

Thanks for the replies very helpful and very much appreciated.