Personal loans vs Credit cards
Thursday September 25, 2008
Many young people have access to ';easy money' - the credit card. However, a personal loan may be more beneficial with many purchases that are traditionally paid for with a credit card. If you plan on making a large purchase in the near future, you might want to consider which option will save you money in the long run. Chances are, a personal loan might be able to save you money.
Credit cards come with high interest rates, pricey fees and only short periods for repayment. This usually isn't the more competitive or the cheapest option available.
In comparison, personal loans have:
- Low interest rates.
- Competitive fees and charges.
- Longer repayment periods, some up to seven years.
- Redraw facilities.
- Flexible repayment options.
If you have a bad credit rating, you can still apply for a bad credit personal loan. A personal loan can help you improve your credit rating providing you make repayments on time. Banks often have stricter conditions for credit cards which might result in your applications being declined. Bad credit personal loans can be used for debt consolidation if you want to take control of your debts.
Personal loans can be very flexible with what purpose they're used for. They can be used for a number of expenses, such as home improvements, holidays, wedding loans, and debt consolidation. Purchasing cars, motorcycles, boats and other large items can be done with a personal loan, while credit cards cannot.
There are generally two options with personal loans. These are unsecured personal loans or secured personal loans. Unsecured personal loans are readily available from most banks. An unsecured personal loan requires no collateral. Secured personal loans are also available. A secured personal loan will usually come with low rates and fees that are more competitive than an unsecured personal loan.
Most banks offer online personal loan applications. With online personal loan applications, a response can be received within minutes. Online applications can be filled out wherever, whenever. You can complete them at home or even from work.
Compare personal loans and find a cheap personal loan that suits you.