Credit Card vs Loan

    I'm in the process of taking out a loan for £5k for a car but then today realised that my Tesco Credit Card still has another 6 months at 0% and has a £5,000 limit.

    The bank loan is 8.7% and I presume I would have to pay a credit card fee but surely this would be the cheaper option providing I can swap on to another interest free credit card?

    I'm sure this is probably obvious but my brain is muddled!


    you might have trouble getting another card for 5k straight off unless your rich anyway

    Normally a loan is a better deal as its a fixed rate with a same amount payable...I agree unlikely you would get another £5k CC unless you have stella credit record. If you fail to make payments on the CC and only make minimum repayments then you will never pay it off

    Lot of info on here:…ans

    thats if you could get another card with the same amount of credit to transfer to, if not you will be paying a hell of alot on interest back on the credit card, i had a virgin card and the interest was nearly £80 a month on £5000 so luckily i had that in savings and just paid it off which i didnt really want to do but i would of been paying it off for ages and loads of interest.

    Credit cards have a nasty habit of increasing their apr

    For a car, you're probably better off taking the loan. If you take the cash on your card, you have to pay to withdraw it, and your 0% interest may not apply to cash advances (might be worth doing if it does, though). Or you could maybe pay for the car by card (depending on where you're buying from) but usually that means it's more expensive to buy in the first place.

    If you have a good credit rating - apply for a Virgin card or similar - they usually have 15-16 months interest free - stick the car on your existing card and balance transfer it over at around 3%. Pay it off in the interest free period and it will work out cheaper.
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