How to pay a person with credit card

Nikolai

Maddog, aren't those cheques at a crippling interest rate? I would be very sure to check this out first....

Gooner71_2

So - how does the maths work? I could borrow £10K on the credit card and take an immediate 3% hit.
Then at the end of 12 months, I'd have made a cumulate figure of 6% on £220 per month paid into a savings account.
Then I'd have to pay the savings onto the credit card to reduce the balance.
Then move the balance onto another 0% card and I'd pay 3% to move it.

Am I better just applying for 6.7% load on the £10K amount?

King_Of_Fools

Assuming you get a £10k credit limit on your card, you are probably more likely to be limited to £4k (depending on how much you earn and how many other credit cards you have).

For example, my Virgin card has a credit limit of around 20% of my annual salary.

Gooner71_2

Working on the 20% principle, I would qualify for the 10K limit minimum. I'm still thinking that a loan would be simpler.

Mutton_Geoff

Virgin Money - £10k BT over 15 months = £298 fee, then payments of 1x £323 plus 14x £25. Balance owed after 15 months £9,625. Cost of loan £298.

Personal Loan - £10k over 15 months at 7% pa = 15x £696. Balance owed after 15 months £0. Cost of loan approx £440.

So, Virgin has lower payments until the repayment is due, you could save into that in a high interest account "keeping up" the £670pm payments (and £25 to Virgin) and be even better off at the end of the term. 3% to borrow money for 15 months is cheap.