Savings matter As compared to credit card
, you can save more with a personal loan because its interest rates are remarkably lower. In the case of the former, the interest rates can be as high as 19% per month. Besides,
personal loan interest rates are negotiable while credit card rates are not. If you have dire need of emergency funds that do not require immediate payment, go for a personal loan since they get easily approved nowadays. Online loan applications expedite the verification process, thus facilitating speedy disbursal. Most financial institutions offer online application facility. Check your eligibility and choose the best rate on your plate.
ALSO READ: Points To Consider Before Taking A Loan Rewards‘n’ offers If you love earning reward points and redeeming the same to avail discounts, vouchers, and gift hampers, the
credit card is a good option for you. Even if you travel less nowadays amidst the COVID scenario and cannot avail reward points on fuel refills, you can earn numerous reward points via online shopping. Better still, these reward points can be redeemed and adjusted against your credit card bills. Acard is an excellent option if you are purchasinga big time. Purchasing items like furniture, jewellery, and electronic gadgets can help you avail lucrative opportunities like
EMI, insurance coverage (for the item), and an extended warranty.
Stability is the key A
personal loan comes with fixed interest rates, fixed EMI, and pre-decided payment tenure. Such features make it a more reliable choice over other modes of credit, especially at these turbulent times. Fixed EMIs help you plan repayments better and save more. They also help you adhere to the budget and empower you with better financial stability.
ALSO READ: Availing Personal Loans Just Became Super Easy with Digital Lending Guard against foul play Credit card is highly susceptible to
financial frauds. If you are using one, never share details like PIN, CVV number, and expiry date over the phone with anyone. No financial institution will ever ask for such confidential information. Avoid saving such details on your computer, laptop, or smartphone. You are also advised not to use thismode for making online payments at public places like cyber cafes.
The above tips would help you make a wise choice between the credit card and
personal loan. Not to say, specific circumstances may also influence your choice and prompt you accordingly. You need to decide prudently and select the option that suits you better at the spur of the moment.