Buying a digital piano pay in full now or use 0% credit

gsix14

Hi, I'm not sure if this is the correct place for this so please let me know if it needs to be elsewhere.

I am about to buy a digital piano and am wondering how best to pay. It will cost about £2000 in total and we have the money in the bank allocated (budgeted) for and ready. I am wondering what is the best way to pay:

1. Pay on the credit card and pay off immediately.

2. Pay with a debit card so the money comes out of the bank straight away.

3. Take advantage of the shops finance offer of a small deposit now (about £200) and pay the rest off over 9 months at 0% APR. This would mean we have the money earning 3% in our bank account over that time.

I don't know it it should impact the decision, but we may want to apply for a new mortgage at some point in the next year.

I would appreciate any thought.

Thanks.

robin58

Worst first - Debt card. NO financial protection. No profit. This is MSE!!

Shop Finance- Ok but you will not own product until last payment. Get the end date of 0% period wrong and it will cost you no doubt a heavy interest payment.

Credit Card - Best in my eyes as you have protection where you can go after the credit card company if things go wrong if the shop stops trading even if you pay off in full.

Ever thought of a 4th option of a 0% credit card over a longer period like 30 = 40 months? You will still have the credit card protection. Payback so much a month and still make the money in the bank on the rest.

As for the possibility of the mortgage, it's more how you run your credit or financial affairs over period of time than the infamous ' Credit Score' number, that will effect that.

Sooler

Consider the Amex 5% cashback offer ...
http://www.moneysavingexpert.com/credit-cards/cashback-credit-cards#amexeveryday

gsix14

Thanks robin58 and Sooler.

I think that the credit card is probably the best option, thanks for the reminder of the protection.

I hadn't thought of getting a cashback card especially. I will need to work out whether 5% cashback on £2000 (plus the 0.5% on the extra £1000 I will need to spend to get to the minimum) on the Amex is worth more or less that the interest (3% in Santander 123) I would earn while waiting to pay off a 0% interest card.