Unsecured Loans vs. Credit Cards
When looking to buy a luxury item, like a new television or
you are probably going to immediately think about using a credit
card as payment. However, you may want to consider utilizing an
unsecured personal loan instead. Both payment types are
useful means for getting quick access to the cash you
necessitate. But, they both have several significant differences
that you should be aware of.
Speed of Access to the Money You Need
These two types of payment methods are different when it
comes to convenience. When using a credit card, you can pull
your card out of your pocket and use it instantly, and even spur
of the moment in the event that you are making an impulse
purchase. On the other hand, utilizing a personal loan will mean
having to apply for your loan, waiting for approval and then for
your cash. Therefore, if you need money instantly, a credit card
is going to be a better option for you. **We offer
instant decision loans for those in need of immediate cash.
The interest rates associated with both are going to be
another key factor in determining which payment type is best for
you. In most situations, credit cards are going to have
significantly higher interest rates compared to unsecured
personal loans. In fact,
personal loan interest rates can be 33% of what credit card
interest rates are. Therefore, you are going to be saving a
considerable amount of money by the time you are done paying off
your debt obligation. If the long-term financial consequences
concern you, then a personal loan is more sensible for you.
Your credit is going to be key when deciding which financing
option is more suitable. Credit cards are obtainable by people
of any credit type. On the contrary, most personal loans are
not. The majority of banks and traditional lenders will not
grant unsecured loans to people with less than perfect credit.
However, here at Choice, we have many different low rate loan
programs that specialize in getting people with
bad credit personal loans. Our loans will not only get you
cash, but will also help you
re-establish your credit history by reporting your account
activity to the credit bureaus regularly.
WINNER --- PERSONAL LOANS!
The only benefit of credit cards is the ability to walk in a
store and make an instant purchase. However, as listed above,
interest rates are much higher, making credit cards less
attractive in comparison to credit cards.