How to work out what might be cheaper - money transfer from a credit card, or a loan

HelenNoreen

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??

On-the-coast

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 purposes