Using cash to purchase something, even if it’s a little expensive, is the most innovative way of financing. However, life happens, and no matter how much you do, there will be times when you have little choice but to look for financial support. If you find yourself in this situation, you are more likely to consider using your credit card. However, before jumping into that decision, have you ever heard of “personal loans”? If you did, are you aware of why they are better than credit cards at some point? So here’s the comparison of the two.
Credit Card Facts
According to The Balance, credit cards are technically plastic cards that give you access to the credit limit your issuer granted you. Your credit limit stands as your loan, and instead of providing you with a lump of cash, your credit card issuer allows you a hassle-free purchase through your card. The significant difference between using a credit card and the usual loan is that your loan or credit limit will always be available if you pay back your balance.
Why Choose Credit Cards?
- Credit cards are better for more minor expenses.
- Allows buy now, pay later policy.
- Help build your credit rating.
- With an interest-free grace period.
Why Not Choose Credit Cards?
- Probability of having enormous debt.
- Limited usage.
- Higher fees.
At first glance, credit cards are tempting. However, knowing they have disadvantages, too, should be a wake-up call for you to consider other loan types, such as Personal loans.
With Vidalia Lending, you can set bi-monthly payments, pay your loan from your bank account, forget about prepayment penalties, and assume competitive rates without hidden fees. Please apply for a Personal Loan and let us help you with your finances in the easiest and fastest way.
Personal Loan Facts
The Business Dictionary defines a personal loan as a consumer loan entrusted to an individual for personal purposes such as vacation, home improvement, vehicle purchase, debt consolidation, etc. This type of loan can either be secured or unsecured, depending on the terms of the bank or the lending company. A secured personal loan will require collateral, while an unsecured one won’t.
Why Choose a Personal Loan?
- Personal loans usually have lower interest rates than credit cards.
- It can be used for consolidating debts.
- The loan application can be made online.
- The loan can be unsecured.
- You can set longer payment terms.
- You can use it for more significant expenses.
Why Not Choose a Personal Loan?
- The chances of getting scammed are higher.
- Some lending companies have prepayment penalties.
- Has a qualification criteria.
Credit cards might have their disadvantages, but so are Personal Loans. So, before you get any of them, you must consider them thoroughly. Take note of everything that needs to be considered and decide carefully what will work better for your financial situation.
If ever you have decided to get a personal loan, know that Vidalia Lending is here to help. Visit and apply through our website, wait for our call within 48 hours, and claim your borrowed money after 2-3 days. Rest assured that you’ll get lower interest rates with no prepayment penalty or hidden charges.
