Using cash to purchase something, especially if its a little expensive is the smartest way in financing. However, life happens and no matter how much saving up you do, there will be times where you do not have any choice but to look for financial support. If you found yourself in this kind of situation, you are more likely to consider using your credit card. However, before jumping into that decision, have you ever heard of the term “personal loans” before? 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 a lump of cash, your credit card issuer allows you a hassle-free purchase through your card. The major difference of using a credit card from the usual loan is that your loan or your credit limit will always be available as long as you pay back your balance.
Why Choose Credit Cards?
- Credit cards are better for smaller 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 big debt.
- Limited usage.
- Higher fees and charges.
At first glance, credit cards are definitely tempting. However, knowing that 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. Apply for a Personal Loan and let us help you with your finances in the easiest and fastest way.
Personal Loan Facts
As defined by Business Dictionary, a personal loan is a kind of 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 you collateral while an unsecured personal loan won’t.
Why Choose Personal Loan?
- Personal loans usually have lower interest rates than credit cards.
- It can be used for consolidating debts.
- The loan application can be done online.
- The loan can be unsecured.
- You can set longer payment terms.
- You can use it for bigger expenses.
Why Not Choose Personal Loan?
- The chances of getting scammed are higher.
- Some lending companies have prepayment penalties.
- Has a qualification criteria.
Credit cards might have its disadvantages but so are Personal Loans. Thus, before getting any of them, you must thoroughly think about it first. Take note of all the things needed to be considered and decide carefully what will work better for your financial situation.
If ever that 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 and no hidden charges.