Credit cards, Credit Lines, and Short Term Loans and why Credit Line is a better option

If your income is irregular, or if you lose your work or had your cut in pay during the Covid-19 pandemic, you will need financial assistance to make up the deficit in your monthly income and fulfil your fixed monthly expenses. There are several opportunities for getting money on credit to cover the shortfall. Credit lines, credit cards, and short-term loans are some of the options.

Although most people are aware of credit cards and term loans, few are aware that consumers can also obtain a credit line or line of credit. A credit card allows you to extend payments on purchases of goods and services without paying any interest or fees, as long as the credit card bills are paid on time.

Short-term loans are another popular way to get money on credit, but borrowers must pay their EMIs on time, which carry a lot of interest in the early stages of the repayment period.


While credit lines are less widely used due to a lack of awareness, credit card facilities are not available to all bank customers, and obtaining a short-term loan without repaying an existing one is difficult.

Credit cards, Credit Lines, and Short Term Loans and why Credit Line is a better option

Less expensive

In contrast to short-term loans and unpaid credit card dues, credit lines seem to have no fixed costs or low one-time charges, along with lower interest rates. Non-prime and new-to-credit borrowers are limited to digital lending options such as short-term loans and lines of credit. The credit lines, on the other hand, are usually much easier for consumers since the payments are usually only paid once in this product.


Unlike short-term loans, credit lines allow you to borrow an amount up to the limit and repay them within the specified time frame or sooner without risking any prepayment penalties.

“Another benefit of a Line of Credit over a short-term loan is the repayment flexibility; borrowers can use the money for a variety of expenses and pay off the loan as quickly or slowly as they want; the borrower just pays interest on the amount used.


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