Irrespective of the type of financing service you are borrowing, the overall aim is to generate funds. However, one of the most heated debates is regarding credit cards and personal loans. When it comes to borrowing short term finance, people usually ask themselves; credit card loan vs personal loan – Which is better?
If you have been asking yourself the same question and looking for some definitive answers, then you are the right place. In this article, you will read about both the loan services and what makes them the ideal choice.
1. Expense size
It is not always necessary that we have the same size of expenses on every occasion. Sometimes you might require more and other times less. Therefore, finding the right financial alternative is important. If you are wondering which is better out of credit card loan vs personal loan, then the answer is that it all depends on your expense size. If you are looking to borrow an extensive amount, then try considering a personal loan. On the other hand, for small bills and expenses, even credit cards can work just fine.
Personal loans, as well as credit card loans, are both available to a large group of people. Moreover, the services can be borrowed irrespective of your employment type. However, when it comes to credit cards, they are easy to acquire in comparison to personal loans. It is one of the biggest reasons that make credit cards preferred by most people in India. But, after having said that, personal loans also do not need much to be approved for.
The verification process in credit card loan vs personal loan is also very different. In the case of credit card loans, the verification process is quite nominal. It is because funds generated are also not that high. However, the same in the case of personal loan is significantly longer. A personal loallows you to borrow funds up to Rs.25 Lakh; hence, the background check is thorough. Therefore, if you want funds on an immediate basis then carry a credit card along with you. But, if you can wait a day or two, then a personal loan can be a better choice.
Personal loans are ideal for: –
To consolidate high-interest debts
If you are looking for a larger amount limitation
You have above average credit rating
Are capable of paying monthly EMI till maturity
Credit cards are suitable for: –
Need funds for small expenses
Are capable of paying your dues in full every month
4. Credit rating
Credit ratings can play a major role when it comes to borrowing funds. It is also one of the important personal loan eligibility criteria. If you are someone who has a good credit score, then try considering a personal loan as your financing method. However, if you have been struggling with a bad CIBIL rating, then credit cards will be easier to avail. Credit scores not only affect the availability of finance, but they also help decide the personal loan interest rate that you would be paying every month.
Bajaj Finserv can give you financing alternatives like personal loan, home loan, business loan, credit cards and more. You can even find various pre-approved offers for these services.
By utilizing these special offers, you will be able to cut down the loan processing time in half and make it hassle-free.
To unlock your pre-approved loan offers today, you can submit your name and contact number.