Which Is Better, Personal Loans or A Credit Card Loan?



Credit card loan and personal loan, both are ways to acquire fund for purchase or meet emergencies instantly. An instant personal loan is an amount credited by the loan provider for a flexible period which is paid back in the form of EMI. A credit card loan is taken against a chip enabled card of a recognized bank where you can make a purchase defined under your credit limit.

 

A credit card loan comes with a credit limit and you cannot purchase beyond the limit.

Which is better? That is completely your call, but you must take a look at the features and benefits each of them provides. Taking a decision after knowing the features will be easy for you.

 

Features of personal loan

 

End-use: A Personal loan is flexible to use for anything starting from education to daily chores or any emergency. The fund is not restricted for just a single-use like the home loan or a business loan.


Eligibility: A personal loan requires an eligibility check to get approved. The loan providers check your credit score and financial history to ensure stability and risk associated with it.


Loan amount: A personal loan can be enough to meet the requirements of a wedding, festival, medical emergency, or a trip. It starts from a few thousand and can be extended up to lakhs.


Tenure: The loan amount can be paid back within a tenure of 12 months to 48 months. You can choose the tenure during personal loan apply depending upon repayment flexibility.

 

Features of credit card loan

 

End-use: Without any restriction, you can use the credit card amount. It is flexible to use for any purpose.


Eligibility: Credit cards are only provided to a few percentages of people. If you are in some emergency need it can be daunting as only a few get the chance to get a loan against a credit card.


Loan amount: The loan amount completely depends upon the credit limit available on your credit card. Suppose you need INR 50,000 and the credit limit available is INR 30,000 it becomes impossible for you to meet the emergency.


Interest rate: The interest rate of the credit card completely depends upon the registered bank. Every bank has its rate of interest.

 

Wrapping up

So, which option did you find better? It is completely your call and the requirement type. If you need a large amount an online personal loan is the best fit while for a small purchase a credit card loan fits well.

 

Comments

Post a Comment

Popular posts from this blog

5 Factors that can influence the interest rate of your loan

Image
  Needs don’t come up by notifying you. You may need funds when you have least expected it to come. However, you need to stay ready and prepared to face situations that cross your path. If you are looking for a personal loan  to meet your various needs, it is now easy. Do you know how a personal loan works? It is a fund that you can use for any need and then repay it in easy EMI along with interest rate. This interest rate is the charge that your loan provider will take from you for offering you the fund as debt. It is always better if you get a loan at a low rate of interest. A low rate will decrease your burden and makes it easy to repay. Find out the factors that make a lot of sense in deciding your rate of interest.   Credit score: A credit score is a three-digit number that accounts for all your past transactions and financial activities. It considers the debt repayment and how you have managed your past credit activities. A good credit score helps you t
Read more

3 Ways to Pay Off Your Personal Loan in 2021

Image
    Carrying a personal loan balance? You can now finish it off easily with some easy tips. Often you feel stressed by being in a long-term loan, where you need to pay off EMI monthly and get stressful bank statement. If you are looking out to finish it off at once, you need to work on it. If you figure out the entire outstanding balance on your personal debt, you can work out on some ways to pay off your debt without any hurdle. It is easy and will give you a peaceful life with no banks running behind you for EMI dates. However finding a good source of amount such as the best personal loan to pay the entire debt will not be easy. You need to focus on various finances and deal with them effectively. Find out a source of income: If your existing income is falling slow, you need to consider some another source of fund. Try out and figure out some other extra source of income so that you can save it and pay off your personal debt easily. Why don’t you pay attentio
Read more

Can Senior Citizens Apply for Personal Loan in India?

Image
  Life can throw a curveball at any point of the hour. Be it an adult, middle age, or a senior citizen, life and its problems are never-ending. Being a senior citizen with no salary can put you through troublesome situations that become daunting. However, the financial market and debt portfolio work equally for everyone. If you have a source of income, in the form of a fixed pension you can get a  personal loan   easily. The loan provider is only interested in the fact that whether you have a source of income to repay the loan. You can use a personal loan to meet any wish or requirement that comes up all of a sudden. However considering your financial crisis and age, you need to keep in mind a few things so that your decision to borrow is wiser.   A fixed source of income: If you have a fixed source of pension every month you can go for a loan. It will help you relax as there will be a source of money to pay back your loan. At such a sensitive point in life, any k
Read more