is it better to borrow $5000.00 from a bank at 10% interest or put $5000.00 on a credit card at 3.9% interest?

Answer 1

A credit card company is usually a bank. Anyway the best place to borrow money is from the company with the lowest rate.

The 3.9% may be a "teaser" rate for a short period of time. If all things are equal.... then the lowest rate is the best.

(Shop for rates, banks, credit card companies & credit unions)

Answer 2

The thing with a loan is they require you to pay back a certain amount, say $250/month for a period of time, around 2 years. A credit card allows the minimum payment, say $100/month, but it may take you 5 or 6 years. Although the interest rate is lower on the credit card, the bank FORCES you to make that payment while you're free to pay as you wish with a credit card therefore you'll probably end up paying more with a credit card anyway. Also, 3.9% seems quite low, somethings up there, maybe an introductory rate or something. Just do the math and see what works for you.

Answer 3

Read the fine print on that credit card, you will probably discover
that the 3.9% is an introductory rate and will expire when the
time period is up (usually in 60-90 days) , after that the interest rate will become something around 19%, depending on the card.
That assumes you have a credit limit of at least $5000.
Go with the bank if your going to pay it off in monthly installments...its less risky & cheaper if it will take more than 90
days to pay it back.
The credit card offer is good..ONLY, l repeat, ONLY, if your
going to pay the $5000 in full, as soon as the bill comes due.

Answer 4

You should first find out more information. Is the 3.9 on the credit card 3.9 fixed (meaning 3.9 only) or variable (3.9 + prime-which actually prime is at 8.25 so the total rate would be 12.15). then you would want to consider whether or the 3.9 is an introductory rate-which it probably is. ( In that case, what does the rate go up to after the introductory rate expires-info should be in the fine print.) In any case, you would probably be wise to take advantage of the introductory rate on the credit card, and then look into your options after it expires. Oh, and make sure if you are taking out cash the 3.9 rate applies to that-sometimes it doesn't.

Answer 5

The 3.9% may only be for 6 months, then it will go up to 10-15%. Read the fine print on the credit card offer.

Answer 6

comparatively and obviously put $5k on a credit card with interest of 3.9% is better compared to bank with 10%.. however the bank interest might based on flat rate thru out the borrowing period, whereas the interest charged by credit card company is compounded.. nowadays lotsa people have a huge debt with credit card company..

Answer 7

It is better not to borrow any money at all.
But if you need the money for more than six month you have to deal with the bank.
CC 3.9% is only good for a short time.
10% interest is very high, shop around.

Answer 8

the lower the interest rate the more money you will save. the 5000 from your bank will cost you $500 in interest but your credit union will only charge you about $200 think 300 dollars in savings

Answer 9

The best thing is to save money on your own and to do not borrow money with intrest. If you gonna pay back to the bank $5500 or $5200, then why you won't be able to save $5000 from your paycheck and then buy whatever you want?!!

Answer 10

from a bank if you put it on a credit card and you are one day late with your payment it goes to 30% and it never drops back take it from some one who knows