credit card or loan?

[BIRD]

My daughter needs to pay for a holiday costing �920.00. What do you think would be her best option? She hasn't got a credit card so would it be best for her to apply for one whoevers doing the best deal or apply for a loan?

[STAH]

I would definitely recommend a credit card for a number of reasons:

i) Most credit card companies now offer an introductory rate of 0% on purchases for x months of the account being opened. All loans that I know of charge interest from the day the funds are available. (Some companies offer loans with a three month payment holiday - but you still pay interest in those three months!!!)

ii) You can do overpayments to a credit card to reduce the debit balance quicker which you can not do to some types of loans.

iii) You may be protected by the credit card provider should the holiday is cancelled in any way. The recourse of a refund is more straightforward via the credit card company in many ways.

iv) Some credit card issuers offer a fully comprehensive travel insurance package for the account holder and immediate family.

Those are my reasons for chosing a credit card. You may need to check with the credit card company with reference to points three and four for clarification.

I believe that Sainsbury's bank offers a card with 0% on purchases for 10 months; HSBC does the same for 9 months. You may need to check this out!

Hope your daughter has a great holiday, and good luck!

[BIRD]

Thank you so much for such a detailed and quick response.

[STAH]

You're welcome!! ;-)

[bymis]

Credit Card Depending on what she earns

i would suggest 2 card in particular

either a Morgan Stanley Card or a American Express Card as these have 0% introductory offers and also they Have Cash back which mean your daughter will actually get money back for using the card.

Hope this is helpful

[BIRD]

Thanks bymis, I'll pass your suggestion on to her.