Thread: credit card or personal loan

I think you should talk to an accountant and have him show you how you can maximise on the tax deductibility of buying stuff on a credit card versus a loan.

BTW, I'm not sure who's given you advice about credit cards - in most cases the interest on CCs is higher than personal loan, so unless you pay the credit card out before interest is due, you'll pay more this way than on a personal loan.

Credit card interest rates are typically around 18 - 20%.

Surely you can get a loan with a much lower rate.

If the loan is secured you you should be able to get a better rate than an unsecured loan.

Talk to an accountant and possibly a loan broker.

Credit cards can be a killer if cash flow is slow you need to pay them off each month to get any interest advantage they can be up to 3 x the interest of a personal loan. As said talk to an accountant get some advice on the tax side of things too.

Credit cards are the spawn of the devil.

Definitely DO talk to an accountant, and a couple of banks.

I don't know anyone who paid less on a credit card than a personal or secured business loan.

loan will be unsecured and percentige on a unsecured personal loan is 14 credit card is 12
and i was talking to a mate who had a personal loan but than payed it out with a credit card as it worked out cheaper
and a mate with an excavation buisness uses his credit card to buy gear because if money is low the montly repayment is lower
ill have it on my finance for about 6 months and if things are going well than ill look at financing it under the buisness name

To pay 25 grand of in two years on a credit card the min monthly payment will be at least $650 per month (prob more) that means you need 2 full days per month just to break even 3 days to cover fuel and any repairs. I run a small bussiness and any loan is a last resort remember if your interest is 10% then you have to add 10% to your quotes to cover it many dont then find they cant cover costs when you are planing to work for yourself its better to over estemate your costs than under and one big thing is nobody ever pays on time

Originally Posted by THE BOOGER

To pay 25 grand of in two years on a credit card the min monthly payment will be at least $650 per month (prob more) that means you need 2 full days per month just to break even 3 days to cover fuel and any repairs. I run a small bussiness and any loan is a last resort remember if your interest is 10% then you have to add 10% to your quotes to cover it many dont then find they cant cover costs when you are planing to work for yourself its better to over estemate your costs than under and one big thing is nobody ever pays on time

i understand exactly where your coming from about being a last means but in my case its a only means and its either keep gyprocking all my life or dive in head first take the risk, it will either make or break me but at the end of the day not doing it certanly wont make me and may also break me ive been guaranteed altleast one day a week on $68 per hour and thats just to make a start but ill also have plastering work on aswell ill keep plastering mainly which will be my wage and the excavation work will all go straight back into the buisness

Have you considered asking your bank for a line of credit? It is one of the best ways to help you in starting a business. Rather than go into the ins and outs of it here, I really suggest you talk to your bank.....tell them everything you want to do, the possible income you can generate....(they already know this anyway)......you may be very surprised how much they allow you to use.