Is the best loan actually a credit card?
Obviously there's a difference between loans and cards. You know what they are.
However, there's a card out from MBNA which is pretty much a combination of the two.
As of today, you're going to be able to take out a 5-year loan (of up to £10,000) at 4.9% interest, with the money being paid into your bank account. You get to keep all the benefits of flexible payments and the like, like you can with other credit cards.
If you're stuck one month, you can pay more the month after, and if you clear your debt early, there's less interest charged, rather than being hit with a charge for paying off early.
Of course, with this being a card, that means it comes with the same conditions as other credit cards too. If you don't clear your debt within the promotional period, you get hit with a higher interest rate (8.9%, in this instance).
You'll also have to transfer the money in the fist 60 days, or the 4.9%, 5-year rate won't apply. And obviously, not everyone will be able to get this card, or get the full amount from it.
However, if this sounds like the kind of thing you'd be interested in, and will be useful to you, you can check whether you're eligible to get one by checking the MBNA 5 Credit Card here.
It has a tool on there so you can see if you can get it, and if so, you're away!
There's a charge of 0.5% on the money you move as a flat-fee, which spread over 5 years, isn't much.
MBNA aren't the only firm doing this - Virgin and Tesco are also offering money transfer credit cards too.
Both give you the opportunity to get 40 months at 0% interest (but there's 4% fees up-front to factor in). They also come with higher APRs once the promotional period is over, at 18.9% or 20.9%.
If you can pay them off in time, these cards could be a real winner.