CC or loan to pay for new heating

jesone

Just had new heating & I have a bill of £4.5k to pay. My question is would I be best doing this on a credit card or getting a loan. I'm slightly confused by the bill having bank details so I guess this would be classed as a cash advance by credit card company and attract high interest rates?
Any advice would be most gratefully received.

born_again

You won't be able to make a payment via bank account details using a credit card. 
Only way to be able to use a CC would be to get a money transfer card, which will transfer to your bank acc & then pay the bill from there.
No S75 on this method.
If you have a CC yes you could take cash, but as you point out would be at cash interest rate from day one & include a hefty fee as well.

A couple of issues, you may not get the limit you want on a money transfer CC, & may take a while to get one.

So loan of CC may depend more on how quickly they want paying.

Brie

Will they take a credit card for payment?  Then if you want to actually delay paying (spread the payments) balance transfer that to another card.  

But frankly it all depends on your cash flow and your ability to get new credit.  Loans have cheaper APRs if paying over a number of months/years but cards can give more protection.  It may be the one time that someone might say pay by card and then get a loan (if you can) to pay off the card.

amanda1024

Rather than use a credit card to pay using the bank details, you’d need to ring them and pay by credit card over the phone. But that’ll only be a better idea than a loan if you’ve got a 0% spending cc (or can balance transfer to a 0% balance transfer), otherwise loan interest rates are generally lower than cc interest. Plus think about how long it’ll take you to pay back.

fatbelly

If they'll take payment by credit card and you can get one of these and you can budget to repay in full before the end of the period then that is the best way

https://www.moneysavingexpert.com/credit-cards/best-0-credit-cards/

born_again

amanda1024 said:

Rather than use a credit card to pay using the bank details, you’d need to ring them and pay by credit card over the phone. But that’ll only be a better idea than a loan if you’ve got a 0% spending cc (or can balance transfer to a 0% balance transfer), otherwise loan interest rates are generally lower than cc interest. Plus think about how long it’ll take you to pay back.

That is a cash advance & will be far more expensive than a loan.

MEM62

jesone said:

I'm slightly confused by the bill having bank details so I guess this would be classed as a cash advance by credit card company and attract high interest rates?

Any use of a credit card to pay for this is going to give you a high interest rate unless you can use your current card and they successfully apply for a BT card.  The risk is that there is no guarantee you will be offered at BT card or that it will have a sufficient limit.  In the absence of that a bank loan would be your best bet.  (And perhaps an emergency fund for the future)    

amanda1024

born_again said:

amanda1024 said:

Rather than use a credit card to pay using the bank details, you’d need to ring them and pay by credit card over the phone. But that’ll only be a better idea than a loan if you’ve got a 0% spending cc (or can balance transfer to a 0% balance transfer), otherwise loan interest rates are generally lower than cc interest. Plus think about how long it’ll take you to pay back.

That is a cash advance & will be far more expensive than a loan.

I'm a bit confused - I've paid for all sorts of things by credit card over the phone, and it's never been classified as a cash advance. It's just a card payment like in shops or online? It would be a cash advance if they used the bank details to send the money over by cash, instead.

born_again

amanda1024 said:

born_again said:

amanda1024 said:

Rather than use a credit card to pay using the bank details, you’d need to ring them and pay by credit card over the phone. But that’ll only be a better idea than a loan if you’ve got a 0% spending cc (or can balance transfer to a 0% balance transfer), otherwise loan interest rates are generally lower than cc interest. Plus think about how long it’ll take you to pay back.

That is a cash advance & will be far more expensive than a loan.

I'm a bit confused - I've paid for all sorts of things by credit card over the phone, and it's never been classified as a cash advance. It's just a card payment like in shops or online? It would be a cash advance if they used the bank details to send the money over by cash, instead.

The OP only has their bank account details. Which means company do not take credit cards. 
On a CC you can not pay to a bank account, without it being classed as cash. Which TBH, would be very hard, as even ringing the bank. They may not allow, other than to a account of your own.

If they take CC's then Yes you do not get charged as cash. 👍