We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
The MSE Forum Team would like to wish you all a very Happy New Year. However, we know this time of year can be difficult for some. If you're struggling during the festive period, here's a list of organisations that might be able to help
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Has MSE helped you to save or reclaim money this year? Share your 2025 MoneySaving success stories!
How to work out what might be cheaper - money transfer from a credit card, or a loan
HelenNoreen
Posts: 51 Forumite
in Loans
My husband wants to borrow £3,000 to cover the cost of a lease extension.
He is trying to compare whether it would be cheaper to do a money transfer from his credit card (currently zero balance) or get a bank loan.
Either way, this value will be included in a re-mortgage in a few months time; so it is only a temporary loan (no other debt other than the mortgage).
The loan is 16.6% interest. With the money transfer (which is available for £2500, not £3,000), can either do 0% and pay a £125 fee. Or no fee, with interest of 6.9%.
How do we work out which is cheaper?? Any ideas??
He is trying to compare whether it would be cheaper to do a money transfer from his credit card (currently zero balance) or get a bank loan.
Either way, this value will be included in a re-mortgage in a few months time; so it is only a temporary loan (no other debt other than the mortgage).
The loan is 16.6% interest. With the money transfer (which is available for £2500, not £3,000), can either do 0% and pay a £125 fee. Or no fee, with interest of 6.9%.
How do we work out which is cheaper?? Any ideas??
0
Comments
-
For a short term loan of a few months don’t look at paying a fee for the transfer. That will certainly cost you more.In the other case 6.9% is a lot lower than 16.6%
as long as £2,5k is enough for your purposes1
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353K Banking & Borrowing
- 253.9K Reduce Debt & Boost Income
- 454.8K Spending & Discounts
- 246.1K Work, Benefits & Business
- 602.2K Mortgages, Homes & Bills
- 177.8K Life & Family
- 260K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards