Best way to borrow 6k with lowest APR

RichieFyh

Hi All,

1st time poster looking for some information on the cheapest way to loan 6k at the moment. I have looked at a comparison site at the cost of loans & at the current 4.2% offered I can borrow the amount over 3 years with a total credit charge of £388.84, the site rates me as having an excellent chance at approval for this.

My credit score is pretty much on par with the UK average so my query is really if a cedit card loan would work out cheaper? My fear is that I apply for one of these & do not get the required amount; thus defeating any lower interest rate repayment goals.

If I was not offered the required amount from a card; would the recently aquired card stop me from "topping up" my required amount with a loan?

Hope this makes sense & someone can offer a bit of advice !

[Deleted User]

RichieFyh wrote: »

Hi All,

1st time poster looking for some information on the cheapest way to loan 6k at the moment.

I assume you mean borrow, rather than loan?

It depends on your credit history, amongst other things. Have you had cards before? What is your income?

You can apply for multiple cards, but if you're not getting 6k, then the rate is likely to be much higher than a loan would be.

You also need to consider your repayment timeframe. Most 0% cards won't last 3 years.

DCFC79

RichieFyh wrote: »

Hi All,

1st time poster looking for some information on the cheapest way to loan 6k at the moment. I have looked at a comparison site at the cost of loans & at the current 4.2% offered I can borrow the amount over 3 years with a total credit charge of £388.84, the site rates me as having an excellent chance at approval for this.

My credit score is pretty much on par with the UK average so my query is really if a cedit card loan would work out cheaper? My fear is that I apply for one of these & do not get the required amount; thus defeating any lower interest rate repayment goals.

If I was not offered the required amount from a card; would the recently aquired card stop me from "topping up" my required amount with a loan?

Hope this makes sense & someone can offer a bit of advice !

You might not get the 4.2% but you might higher, depends if you fare well in the lenders system of deciding whether to lend to you.
Don't take what the comparison site says as gospel truth, they have no access to your credit history.

Your credit score has no bearing on what rate a lender offers you.

Its suggested you make 2 applications, 1 with your bank if on good terms and 1 other with another lender.

You might find you get a better rate if you get a loan of 7.5k.

swindiff

The cheapest way of borrowing money bar far is by using credit cards. If and how you can go about this will all depend on your ability to get credit.

If I needed £6k in cash, I would withdraw it from my Halifax Clarity credit card into my Halifax current account (no charge). Than transfer that balance to a 0% credit card (Virgin do 40 months for 2.59%)

Total cost of borrowing £155.40.

Repayments would work out at £153.89/month

bargainbetty

swindiff wrote: »

The cheapest way of borrowing money bar far is by using credit cards. If and how you can go about this will all depend on your ability to get credit.

If I needed £6k in cash, I would withdraw it from my Halifax Clarity credit card into my Halifax current account (no charge). Than transfer that balance to a 0% credit card (Virgin do 40 months for 2.59%)

Total cost of borrowing £155.40.

Repayments would work out at £153.89/month

This assumes that you can obtain that level of credit on those terms.


The OP has already noted that they do not have that level of available credit at this time, which is why a loan might be more practical.


Additionally, while a loan of £7.5k would probably incur a much better rate, please don't forget to overpay the surplus back as soon as you can - don't spend £1.5k extra for the sake of it.

swindiff

Which is why I said
"If and how you can go about this will all depend on your ability to get credit."

I don't see where the OP, has indicated they have a poor chance of getting credit?