Which is better among Credit Card, Personal Loan, and Credit Line?
Credit cards, personal loans, and credit limit let you borrow money from banks or non-banking financial organizations. Three of these lend you money at some rates of interest. Whenever you are going through any financial crises, the thought of personal loans, credit lines, or credit cards hits your mind.
It is quite obvious too. But these are not the same in every aspect neither they are different in every aspect. Know Which is better among Credit Card, Personal Loan, and Credit Line? Let us differentiate them one by one. First of all, let us consider a personal loan.
A personal loan is a kind of loan that lets you borrow money from a bank or non-banking financial organization. If you are eligible according to the parameters of the lender and you have all the required documents then you can easily get a personal loan within a day. You have to pay the principal amount with some interest rates to the bank. There is a pre-decided time to return the loan.
You have to return this loan within this tenure. The amount of money you borrow is fixed. You can’t get more than the amount of loan. There are so many banks that provide you a personal loan at very easy rates of interest. Besides, personal loans are unsecured loans. It means they don’t require anything to pledge to the bank.
Now let us come to the credit cards. Credit cards also let you borrow money from banks and NBFC’s. these are also known as short-term loans or instant loans. If you have a credit card then you can instantly borrow money from the card provider organization or lender. There is no need to go to the bank or anywhere else. But one shot come of credit card is that it comes with very high interest rates. Besides this disadvantage, they provide you cash very quickly, without any hassle.
A credit line or line of credit is a kind of loan in this also you borrow money from some banking or non-banking financial organization. But in this, you don’t have to pay interest on the whole amount. You pay interest only for the amount you withdraw.
Difference Between Credit Line and Loan, know Which is better among Credit Card, Loan, and Credit Line?
Personal loan and credit lines are quite different. The reason after that in personal loan once you withdrew your credit you can’t get more. Besides that, the credit line has different criteria. You can get again if you require but there are some terms and conditions that are defined by the lenders.
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Special Note: An individual must examine the whole EMI amount payable to the lender with the Personal loan EMI calculator.