If you have big finances lined up ahead, chances are high you have two good options. You can either use your credit card to charge the item or pay it off over the time. Or you can avail of a personal loan to serve your purpose. Well, having a personal loan needs more effort compared to just swiping a card. You just have to apply for it and get it approved. In addition to that, it can also be the best option to cover all the purchase costs in different situations.
This post talks about the signs that show that personal loans are better than credit cards in real life and eventually make your life easier.
- You Need a Large Amount of Money
Most of the personal loan vending institutions let you lend a significant amount of money. For instance, if you need to finance a big purchase and need to borrow 10lakh to 15lakh or more, it is quite unlikely that you will have access to such huge credit using a credit card. But based on your credit score and income, it will be quite easy to find a personal loan vendor from where you can have such a large loan amount.
- You Can Qualify for Lower Interest Rate on Personal Loan
When you borrow money to buy anything, you always want to pay off the least possible amount of interest that extends over the span of time of the loan. At times, you can enjoy this privilege if you are eligible for a 0% APR card and where the card’s balance will be paid off before the expiry of the promotional rates.
But in other cases, you may also not get qualified for the card that offers no interest on purchases. Or 0% APR rate might come into effect only for a stipulated frame of time during the repayment timeline of the loan.
In such situations, a personal loan with low and fixed interest rates turns out to be a better solution for the lender. It is more because the lender needs to pay the minimum possible amount in financing charges.
- It Might Take a Little to Repay What You Owe
Personal loans usually have comparatively long tenure for repayment timelines. For instance, you may apply for a personal loan that you can pay back over five years or more. If you need a long time to repay all your funds borrowed, any given 0% APR promotional rate on the credit card will long expire until you get free from the debt.
If you are using a credit card compared to a personal loan, you may pay a higher interest rate for a long time. But on the contrary, with the help of personal loans, one can benefit from having a similar affordable rate for the entire duration of the multi-year repayment period. This will make your project less expensive.
All you need is to get in touch with a professional and reputed personal loan vendor to get the best quotations for your loan application. The professionals also help process the application and get you the best amount. Hope now you understand why choosing a personal loan over a credit card is an ideal decision. Please feel free to share your insights with us below in the comment section.