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Wallet Friendly- Credit Card /Personal Loan

 Credit card Vs Personal loan

Personal loans are displaying a steady climb in the economy during recent times. People are looking towards best personal loans that have repayment options over the credit card borrowing that has rolling credit.  Though credit card offers your interest free credit period, you are obliged pay high fee when you fail to make the payment on time. If you are making any big purchase with the credit card and repay the amount through EMIs over a period of time, the interest rate is very high when compared to small personal loans.  As the credit cards don’t offer fixed repayment terms, the interest gets compounded indefinitely raising burden for your pocket. Both the unsecured personal loans and credit cards have their own pros and cons.

When is personal loan better option?

  Best Personal loans are versatile in nature and can be used for any need. These loans have no end date for debt. Repayment tenure in these small loans is long when compared to credit cards. As you have fixed repayment option, you will be able to close the loan hassle free at the end of the tenure. In credit cards, you have pay off the balance in the short interval or incur fee.  These quick loans are unsecured and the banks cannot repossess a purchase. Though personal loans carry high interest rate when compared to other loans, it is always less than the credit card.

Unsecured personal loan could be a better option over credit card, if you need more time to repay the amount. Though it may draw some processing fee to avail the loan, it is a pocket friendly option when time needed to repay the loan is more than your regular credit cycle.

When is personal loan better option?

Credit card is not summed up just with drawbacks. It has its own advantages too. There are few instances where credit cards turn to be a better option too.  If you are opting go for smaller purchases which can be paid off with in credit cycle or you have a credit card with 0% APR, credit cards would serve your purpose at the best. You will be enjoying the benefit of credit with zero interest.

While both the credit options has its own advantages and disadvantages, one should take a deep breath and analyse best suitable option that fits to address   your financial concern. Be cautious to know about the interest rates offered by different banks for the small personal loans before you avail them and check the features of the credit card before you pick one.

Your financial needs and repayment capacity are the two good factors that decide the best choice for your purchase.

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