borrowing

N

nocred

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Which would be the best option - I need to borrow about 5000 euro and am wondering whether I should use my credit card or borrow from the credit union. I would be able to make fairly substantial repayments weekly.

Thank you.
 
"Borrowing" on a credit card usually doesn't make sense as it's one of the most expensive forms of credit available (assuming that you don't clear the outstanding bill before the c. monthly credit period exipres and interest charges kick in). The CU or an unsecured personal loan ( www.askaboutmoney.com/clu...ONAL_LOANS ) would most likely represent better value for money.
 
Unless you can pay the whole lot back in the 50 or so days credit from the CC company then it would be much cheaper to go with the CU. I suppose if you do a balance transfer you could end up saving a bit as long as you pay the loan off before the six months timeframe but it seems a bit messy to be honest. I'd go for the CU as you can vary the amount you pay back so its quite flexible without the risk.
 
There was a fairly recent discussion about borrowing from credit unions and what the 'real' interest rate (APR) was.

Have a search for it. Depending on you point of view, you may conclude that it's cheaper to borrow from a bank rather than a credit union.

Borrowing from a credit card is very expensive.

Sluice
 
There's a myth that using a credit card and letting the balance run is the most expensive form of credit. So much so that some people will consider anything to avoid using their credit card.

Bottom line, it's all about the APR. There are ads on the radio at the moment for "I think" Citi-Financial, offering loans at 23%. That's almost twice the rate on my CC.

I was looking at some Alloy wheels in a shop window recently that had a cash price of about €1200 but the amount repayable if you bought using their finance package was over €2500.

If you can repay quickly then the lack of hassle with the credit card should be taken into account. The ability to pay as much as you like, to pay less, to pay when you like.

Just making the same repayments as the Allow Wheel Finance package you'd still save a fortune buy paying using credit card.

Used wisely the credit card is a good product and shouldn't be avoided or feared based on idealogical nonsense.

-Rd
 
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