Credit Card versus Loan

JCR

Hi, not sure if I should put this in the loan forum on this one. Anyway, my car has just died and I would like to get a newer more reliable one. I don't want to spend more than £4,500 though. I have a bit of money and thought I could put a £1000 down and pay the rest by credit card. Then BT on a 0% for the longest period I can get and pay it off. Or do you think I would be better off just getting a loan for the full amount and paying it that way. Just wondered if any of you MSE's could tell me their thoughts, as I am not thinking straight on this.:j

Thanks

Stephen_Leak

The MSE way would be the 0% credit card method. You just try getting a 0% loan.

CLAPTON

it depends upon how long it will take you to pay off the CC/loan. 0% deals only last a specific time after which the APR shots up and one can't automatically assume you can get a new 0% deal.

Stephen_Leak

Al_Mac wrote: »

They usually charge you for using a card

True, and this would have to be taken into account. However, I cannot see this being higher than the interest on a loan.

cm233lh

Transfer the 0% cash onto your egg money card and then transfer it to your bank account so you can pay cash (to avoid credit card sur-charges). When the 0% runs out, get a loan to pay off the card, if necessary.

JCR

Thanks for your responses - I had taken into account the BT admin fees and as some of you say this probably would still be lower than the interest being paid back on a loan.