Loans or Credit Card?

chooey

I'd like to buy a new (to me) car.

I want to borrow about £9000, and I don't know whether I should go for a loan or borrow on a credit card.

I've never applied for a loan before, so I honestly don't know a thing about it. I have got a credit card with about £1500 on it and unfortunately made a late payment on it last month. They only one I've ever made. :doh:

I earn about £21k and am currently living back with the parents and saving hard for a deposit on my own place.

What advice can anyone offer?

Thanks all,
Chooey

~Beanie~

It depends really on what interest rate your credit card is charging (I assume your limit is high enough), how fast you were planning in paying it back and what rate you could get on a loan.

Have you got the self discipline to repay a credit card? By that I mean that with a loan, you repay a set amount per month and can't re-use the money. With a credit card you could repay say £300 per month, but then add £200 of other stuff thus reducing the balance by only £100.

queen_of_leon

can't u get a cheaper car? to be honest i don't think u'd be offered anything near 9k on a credit card.

the best ccs are listed in the stickies at the top of this forum...and if you're after a loan i would go with egg or another company that lets u repay early without penalties.

CLAPTON

advice is, sad to say, to save for things you want rather than to pay silly amounts of interest.

robibrk

IMHO Think it is better, that you go for loan.