Credit Card Loan or Personal Loan: Which one you should take in emergency

Need for cash can come anytime in life. When you require cash and you are unable to choose the option you should opt to fulfill your need. You have many choices¬†but you will go for which will be convenient and best for you. Which fits in your financial plan as well. Sometime you won’t get the entire credit you need so you need to go for other options.

Points you need to consider before taking a loan which will suit you: Personal loan or credit card loan

Interest Rates

The first thing which borrower think is about the interest rate. That interest going to decide how much the borrower is going to pay back to the bank. The interest rates are applicable to the principal amount. While providing the loan bank take the asset as a guarantee. Bank also need to play safely while proving the loan. Generally, interest charged for the personal loans is lower than the interest charged when people apply for a credit card loan.

Different Interest Rates

Bank gives you different options to take a loan where you will choose the options suit you.

Bank provides unsecured loan as well but in these loans, you need to pay a higher interest rate. Which higher than the secured loan. You can customize your loan through lenders. As we know it comes with a higher interest rate when we take an unsecured loan.

Repayment Schedule

When you take a loan you always worry about the repayment schedule. When you take a personal loan then you will get the fixed repayment schedule.

But in credit card, you need to wait for the invoice which is generated by the financial institute. For this, you won’t get the fixe date whether they put fine for late payment.

Paperwork Involved

When you apply for a personal loan you need to give them your documents to verify your identity, address proof, income proof etc.

The borrower takes this as a main headache. Sometimes it takes time to sanction the amount. While in credit card loan you get relief from the paperwork. So sometimes people prefer credit card loan instead of a personal loan.

Part Payment

When you take a personal loan you can not do the part payment before a fixed time. Lenders fix at least one year of the period. While in credit you can pay anytime when you get money. There is no restriction like this.

 

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