While there are lots of credit tools available in the market, most people often look for a way that is flexible, convenient, and secure. Speaking of the need for liquid funds, credit cards are the easiest and handy way to fulfill your debt requirements. A simple swipe will make the cash accessible to you instantly. Well, credit cards are perfect when it comes to short debt loans but what if you were told to pay a heavy amount? This is the point when many people get stuck and cannot decide which loan to opt for – availing personal loan online or applying for a credit card. Experts recommend credit cards for short debt investment while a personal loan is for those who need a longer repayment tenure to pay back the debt. But for both of these, you have to pay interest rates which can vary depending on the loan type. Read on to know which one will cater to all your needs without making any hassle.
Credit Card Vs. Availing Personal Loan Online
Let’s have a look at both the loan types to understand the best debt instrument so that you take a better decision!
When a credit card is offered to an individual, the lender extends the credit limit to a certain amount. The borrower can use this amount and spend it on all the cashless transactions. But the borrower needs to repay it as per the due date. For all your small or big purchases, you can use your credit card as it is extremely convenient and handy too. Anyone can apply for it at any time that requires less documentation. But there is a downside too, if you do not complete the payment on time, you may have to pay a higher interest rate for your due amount. But a credit card includes multiple charges that can lead you towards a debt trap. If you are in urgent need of funds, which you know that you can easily pay off within a short time.
Instant Personal Loan Online:
A Personal loan is an unsecured loan provided by the banks or any financial institution based on various factors including employment history, repayment capacity, income level, and credit history. Well, a quick personal loan is always better than a credit card as it is easier to avail and allows you to control your repayment. There are different types of personal loans that can be customized to suit your individual needs. Check out the below benefits of applying for a personal loan online-
● Eligibility criteria for personal loans are less restricted compared to credit card
● If you are looking for a low-interest rate to pay off your debt, then a personal loan is best. But to get low interest, your credit score should be good.
● Quick loan approval process within hours and require minimal documentation
● You can avail higher loan amounts with longer loan tenure. No additional hidden charges (sometimes you may have to pay process charges)
When to Opt for Personal Loan Online?
If you are dealing with some financial crisis, then availing of a quick personal loans online is the best way to come out. If you need funds for making multiple payments with a longer repayment period, then go for a personal loan.
Which One to Get?
Now you are aware of the difference between credit cards and personal loans. Both can be used to borrow funds and make repayments. Depending on your needs, perspectives, and circumstance, select the one!