Money is an important instrument when it comes to human sustenance. We all need money to do virtually everything from shopping to paying bills and house rent.
However, money is sometimes not easy to come by nowadays. At times, people will have to use such facilities as payday loan to be able to raise money. Furthermore, bank borrowing or money lending could also be the last resort for people to be able to raise money to cater for their needs.
Payday loans could be a good option but there are other payday loan alternatives you can consider when you are in financial difficulties. However, whether it is from cash loans or credit cards, it’s great to be able to raise funds to finance one thing or the other.
There may be many times when you need to fund something and are debating between a personal cash loan or using a credit card as payment.
These two methods of payment are both useful at different times and understanding both can be helpful in deciding what to use. Time to learn all about personal cash loans and credit cards and which option best suits you.
Debt Consolidation
If you are looking to consolidate your debt, you may want to look into a personal cash loan. If you have a large amount of debt and want more time to pay it off, you can take out a personal cash loan that has fixed payments and lowers interest rates.
This can definitely help boost your overall credit and help you pay off your debt as your debt will be in one, neat place. You don’t need to worry about varying interest rates or multiple payments which is a huge plus.
Balance Transfers
If you have a small amount of debt that you are looking to pay off, a credit card with an introductory 0% interest rate may be your best option. It means you can pay off any small debts you have with a 0% credit card.
Then you do not need to worry about making interest payments on your debt. This is a great option when your debt is under $15,000 and you have good credit that will allow you to get a decent credit card.
Small Loans
Sometimes, you need small loans quickly and you don’t need a whole lot of money. People sometimes get small loans they can easily use to cover some expenses. When this is the case, and whatever the reasons why you need small loans, using a credit card may not be a viable option.
These types of loans will be approved quickly and you will have the cash within a day. If cold hard cash is what you need than small loans are perfect in situations like these.
Large Loans
When you need a large sum of money, a personal cash loan may be the best place to turn. A private lender, such as a bank or credit union, may be willing to work with you to get you a larger sum of money at a lower interest rate.
While banks will look at your financial history, income and creditworthiness, a credit card company may only look at your credit score and give you a lower limit on your card. So if you need a bigger amount of cash, a personal cash loan is the way to go.
Balance Pay Offs
If you are funding something small and know that you will be able to pay the full amount within a month, opt to use a credit card. When you can purchase something on a credit card then pay the full balance of the bill within the same month, you are not subject to credit card interest rates and can reap the rewards of using a credit card (reward points, for example).
However, if you will not be able to pay off the credit card balance in full, you will be stuck with a high-interest payment on top of your credit card bill. If this is the case, a personal cash loan is a better option.
With a personal cash loan, you will have a fixed interest rate and a set monthly payment that won’t keep going up and up and up as a credit card bill can. So, assess the likelihood of you paying your bill in full before using that plastic!
As you can see, there are pluses to using both a credit card and a personal cash loan. Your situation will dictate which your best option so choose wisely is!
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