Personal Loan Vs Credit Card: Personal or Credit Card Loan, Which One is More Beneficial for Long Term?

Personal Loan Vs Credit Card: In India Credit Card ,credit card) market is growing rapidly. Due to the rapid growth in the economy and financial services, there is a big jump in the credit card customers. Joining more and more people in banking service and payment system (Payment SystemThe new facilities available in ) have expanded the credit card market. With credit cards, customers get many such facilities which are not with any other card or payment system. Even if you want, you cannot take the facility like credit card from debit card. Similarly, different types of facilities are also given in different credit cards. If a card has more advantage on purchases in the country, then a card has more advantage in foreign trips. This benefit is available in the form of credit or loan. Then the question is how different it is from personal loan, because personal loan (Personal Loan) Even then he only gives us loans.

Let us know how credit cards and personal loans differ from each other in terms of loans. The real purpose of both is to remove the shortage of money and money. But this deficiency should be ‘genuine’, not created intentionally. In such a situation, the possibility of misuse of credit card or personal loan increases and we keep getting caught in the loan trap. The repayment capacity, fund requirement and where the funds are to be utilized decide the need for availing a credit card or personal loan.

Difference between credit card and personal loan

Credit card and personal loan both work to provide unsecured credit. Despite this, the big difference between the two is that credit cards can be used for loans again and again. As and when you pay your credit card bill, you will be eligible for the next loan or next purchase. Such is not the case with personal loans. It cannot be used as a credit card loan. Personal loan will depend on your CIBIL score whereas this is not the case with credit card loans. You do not get as much time to repay a credit card loan as you get for a personal loan.

Simultaneous work with credit card

It is easy to take a loan against a credit card and convert it into EMI. This is also the case with personal loans, but the terms of the banks are difficult. The interest rate calculation is also higher. Understand this with an example. Suppose you have to go for a holiday somewhere, for which you have to buy tickets. Suddenly the son needed a smartphone, which is even more important to buy. In the meantime, the situation came such that it would be necessary to do some small work in the house. Here you will see more benefits of credit cards.

You can do all these expenses with your credit card and next month when big money comes in hand, you can pay it according to your convenience. Train ticket or air ticket, phone for son or material for building a house, all this can be done with credit card, that too without any money. The best thing is that if the credit card spends more, or if you find it difficult to pay in one go, then convert it into EMI. EMI will be according to your convenience and the budget of the house will not be disturbed.

As and when expenses come up, you can settle them with a credit card and pay bills later. But personal loan cannot be taken separately for each time expenditure. This should also not be done because the effect of the loan also affects your CIBIL score. It doesn’t matter if you repay the loan on time, but if you miss it due to some reason, then a one-time personal loan can harm all your future loans.