Short-term loan or balance on credit card?

pacpac2018

With respect to a healthy credit file, would it be recommended to carry a short-term loan on £1,200 with monthly instalments or use £1,200 on a credit card with a £2,400 limit? Both lines managed within the T&C.

Willing2Learn

What sort of short term loan? If you mean a PDL, then the credit card being managed correctly is the best option in my book.

[Deleted User]

What are you looking to purchase for £1200?

pacpac2018

General question. In what way would what to purchase make a difference with respect to use of a credit card or short term loan?

[Deleted User]

Both would show the same debt.

Any difference in how they are viewed would come down to a lender's criteria.

cymruchris

A short term loan from a payday style lender might give you difficulties if you wanted a mortgage in the future. From my understanding, loans of 6 months or less fall into this category, but happy to be corrected if someone has better information.

Ben8282

Other than telling you to avoid pay day lenders, I wouldn't worry too much about the credit file but concentrate on the practical considerations.
The obvious solution would be to obtain a 0% purchases credit card if that is possible. I assume that you can pay for this item by credit card.
Failing that, concentrate on what would be more convenient and what would cost you less in terms of interest. How short term are we talking about?
I don't think a bank will give a loan for less than a year. If you need the money for a shorter term than that you will either have to use a payday lender, not good for credit files and not good in terms of probable APR or else get a bank loan and repay early, which may cost you two months interest as an early repayment charge although there may be a way around that.
I would probably choose the credit card option but again, if this is your only credit card and you use it for day to day purchases by not repaying in full each month you would be paying interest on those a well.