CreditCards Blog

Hi,

I am about to purchase something and have two choices...

1. Purchase it for 377.10, pay it back at 0% at a cost of around 31 a month for 12 months = total price 377.10

or

2. Purchase it for 289 on an MBNA Amex card where the balance is already 241.87. This will make a total balance of 530.87. The Monthly interest rate is 2.5292% and I haven't got a clue how they work the minimum payment out (something like the greater of 25 or charges, fees & interest).

If I was to pay a similar amount per month on the second one (around 30), which would cost me more in the long run, bearing in mind I will only pay the credit card until the balance is what it was in the beginning (241.87).

Sorry if I've confused you, any help would be appreciated!

You have said your monthly interest rate but what is your annual interest?

Dont quote me but I think you are about £2.00 better off putting it on the card that charges interest

That is an APR of 34.95%
OUCH!!!

You would probably be better off trying to get a new card that offers 0% on balance transfers and purchases. This would save you about 100 in interest over 12 months. And you would have a much smaller APR.

I think you are probably better putting it on the card too - a loan over 12 months for 289 @ 34.95% would cost 346.59 so you would definately be saving in the longrun.