Looking to get a new phone? Some new kitchen appliances? Maybe even renovate your house?
No matter what the need, we can all be a little tight on cash at some point in our lives. The best way to handle the matter is through a personal loan or through a credit card.
These popular financing choices can be of great help, but which one do you choose? You’ll be surprised to learn that choosing between a personal loan vs a credit card is about a lot more than how much you want to borrow.
Personal Loan vs Credit Card
Personal loans and credit cards each have their benefits and drawbacks. Let’s take a look and see which one works best for you.
A personal loan is a great option for those who need a considerable amount of cash in order to pay off something.
Loans are impressive for their level of flexibility. As the loan receiver, you’re given a value range (the range of money the company is willing to finance you) and you pick an amount that works for you.
After you pick your loan amount, you simply begin to pay it back at your earliest convenience, along with any accrued interest.
The personal loan option is fantastic for those who need a certain amount of cash without going through all of the “red tape” of credit checking, which is why people with lower credit scores tend to gravitate towards this option.
It’s also easier to stretch the loan payments over a longer period of time.
A credit card is best for smaller loans, but there are some key differences between a credit card and a personal loan that make a credit card stand out.
First off, it’s called “credit” for a reason. The company will take a look at your credit standing and income to determine your total allowance on the card the better your stats, the more you’ll get.
Unlike personal loans, however, you get a ton of bells and whistles with a credit card.
First off, unlike loans which only give you a set deal after you sign, the money on credit cards can be used freely until you reach your credit limit.
Depending on how stellar your credit is, you can also get sweet deals like low or no APR for months or even a year, credit limit increases, fraud protection, and more.
Just remember to make your payments on time and you’ll be good to go.
The Quickest Way to Get Paid
When it comes to a personal loan vs credit card, the differences are clear. But no matter which one you choose, you should know that we are the company you’ll want to finance through.
We specialize in offering payday loans between R500 and R8,000, so you can get the money you need for the job.
The application process is simple, and our process allows you to get recognized by multiple lenders in an instant. Best of all, you can get your money in under an hour.
Visit our site to find how we can help you with your financial burdens. We look forward to having you here.