Credit card or small loan?

[JemmaB]

Im hopefully going to be self-employed in few months, I only need a small start up loan as some of my products are in the rental price.

I was thinking enough to cover a months normal wage to cover my own bills and products I need. Possibly £1500.
I've never borrowed money before, my boyfriend hates the idea of loans.
So I want to know if I'm best having a 18 month interest free credit card and make sure I pay it off before this time. Or would a loan be better where its spread across more time??

Heeelp! Any advice welcome!!

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[professionaleye]

Hi, I set up 3 years ago and got an interest free credit card with a £2k limit. It was ideal as it enabled me to shop for stock and set myself up. It also helped to fill the fridge for myself, my husband and my daughter.

Don't think I could have done it without. You can always transfer the balance if you don't manage to clear it off in 18 months. Check them out and see what deals are available.

Good luck


Lisa 😃

 

[JemmaB]

Well I didnt realise you could move the money to another 0% card. Thats good. Would this affect your credit rating badly?

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[curlygirl]

a credit card would be better as you could escape any interest at all if youre sensible and by having a 0% one and making your monthly payments every month, without fail ( set up a minimum amount direct debit so you never forget) then you would be enhancing your credit rating as a sensibile borrower. if you went for a loan there would be interest regardless so i would personally go credit card and like the previous post mentions, if you havent cleared it fully by the time to interest free period is up you have the option to transfer to another card ( for a minimal fee dependant on the remaining balance) good luck with starting up - exciting times! juast be sensible- read the thread from lynne on here ( sorry cant tag) and only get the essentials until you make enough money to treat yourself to new and exciting ( and possibly more expensive ) things! x