Is Getting A Personal Loan Better Than Using A Credit Card?

Posted by mohammedali on May 9th, 2020

Personal loan or credit card? Are you in a dilemma about your suitable lending source?

Well, both meet different requirements; you just need to find out the best possible option for your situation. As both are an unsecured loan, they do not require any collateral. Even the loan processing fee and interest rate are similar in both the sources, credit cards being slightly higher. 

A personal loan is a fixed loan with equal monthly payments over the length of your loan, while a credit card is considered revolving debt; the amount you can borrow varies depending on how much you spend and how much you pay off each month.

Buddy Loan offers personal loans at low interest rates with flexible repayment options. Credit cards provide a convenient form of payment for whatever you buy, whether it is in person at a store or online. The downside is, using a credit card for regular purchases and neglecting to pay your balance in full can result in huge interest charges that accumulate over time.

In some cases, a personal loan might work better than a credit card. Since personal loans tend to offer lower interest rates than credit cards, this is especially true if you have good or excellent credit.

Depending on your card’s APR, interest charges can accrue quickly and bury you in debt. Some credit cards charge annual fees, over-the-limit fees, and late fees. You need excellent credit to qualify for credit cards with the lowest interest rates or best rewards programs.

While you can pay for many services with a credit card, if you need cash, you may owe a cash advance fee or convenience check fee, and interest may start accruing immediately.

Personal Loan Benefits:

  • Personal loans usually come with lower interest rates.
  • Personal loans are great for consolidating debt if you can get a lower interest rate.
  • You can apply for a personal loan online with Buddy Loan
  • Personal loans are usually unsecured loans i.e. they do not require any collateral.

 

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