Everyone has their own needs, and according to their needs, it is important to decide what is good and what isn’t. The battle between credit cards and personal loans has been ongoing and it will continue to go on for years to come. With this, it is crucial for us to choose one that will satisfy our needs and will not create problems for us.
With this thought in mind, let’s look at different situations and analyze whether you should choose credit cards or personal loans for your financial needs.
1. Requirement: If you need a certain sum of money every month, credit cards can be good for you. In this case, you need to be sure that you’ll be in a position to repay the amount on or before the due date. If you want a considerable amount at one go, you should choose a personal loan because it will help you in getting the entire amount at one go and give you the option to make monthly payments to get rid of debt.
2. Eligibility: In case of personal loans, there are not many requirements you have to satisfy to get the loan. This makes it easy for us to get a loan as and when required. However, the same cannot be said in case of credit cards. Applying for a credit card is easy, but there can be a number of reasons because of which you might not be eligible to get a credit card. In this situation, if you want to get a temporary financial solution, a personal loan is the best option available to you.
3. Bad credit: If you have a terrible credit score, the credit card will not be an option for you. Most of the banks will not give you a credit card if you do not have a good credit score. However, you can still get a loan with bad credit. This can be a blessing for you if no one around you is willing to help you with your financial crisis at a personal level. Personal loans obtained with bad credit can even be good enough for you if you want to stay away from credit card problems.
4. Responsibility: In case of personal loans, all you have to do is to make timely payments and do nothing apart from it. However, with credit cards, you have to be extremely careful because there might be a number of people around who can steal your credit card and your card details. This can increase the chances of fraud, and we are sure you do not want it to happen.