Loan v credit card

PollyArthr

I have a loan to purchase 2 mattresses. Amount borrowed is £2150 @16.9% over 5 yrs paying £52 per month. Interest charge over 5 yrs is £900.

I have an MBNA credit card @ 7.9%.  I have tried unsuccessfully to use the calculator. Will I be better to pay off loan and use credit card?

Nebulous2

The APR will guide you on this, all else being equal. The credit card will cost you slightly less than half the interest that the loan will. 

That becomes complicated if you use the credit card for other purposes however, and also if you don't pay it off as quickly.

If you only use the card for this and maintain the monthly payments at £52 then you'll finish it in about 48 months. 

Credit cards have minimum payment terms. You need to check what it is for your MBNA one. 

Ebe_Scrooge

All other things being equal, the credit card is the better option - it's half the APR of the loan.

A few things to bear in mind, though.  Firstly, 7.9% sounds very low for a card - is this a relatively short-term promotional rate?  If so, would you be able to repay the full amount by the time the promotion expires?  Secondly, you say you "have a loan".  You can't use a credit card to pay off a loan, if that's your intention (you'd need a money-transfer card for that).  Thirdly, if you have a low-purchase-rate promotion on your card, and you're planning to buy the goods on the card - are you still within the qualifying period?  Many cards that offer promotional rates only apply that rate to purchases made within the first 90 days (or similar) of opening the card.