If you need to borrow money, there are numerous options available. For example, personal loans and credit cards allow you to use the funds for any expense. However, there are distinct differences between these financial strategies, which you must understand before signing any paperwork and committing to a payment plan.
Here's an explanation of why personal loans have advantages over credit cards when you need funds quickly, easily, and accessibly.
Understanding Personal Loans
When you receive a personal loan, you get a lump sum to repay over time with fixed payments. Personal loans typically have fixed terms rather than unlimited access to funds in the future. You can often get lower interest rates with a personal loan than a credit card.
These loans are versatile and can be used for any purpose, such as car repairs, tuition, seasonal expenses, and monthly bills. Although applying for a personal loan may cause a small and short-term impact on your credit score, you can ultimately improve your credit score by making the payments on time each month.
Understanding Credit Cards
With credit cards, you'll have ongoing access to funds and revolving credit up to a specified amount, which is your credit limit. You typically pay interest on funds used and have a credit card bills that varies in amount each month.
Credit cards are convenient to use at retailers and when shopping online. However, many credit cards have monthly or annual fees, plus higher interest rates than personal loans.
Why Personal Loans Are Better Options
When you need quick cash, a personal loan has many advantages over a new credit card.
Here are some of the best advantages of personal loans:
- Easy application process
- Available for people with bad credit
- Receive one lump sum of money
- Lower interest rate
- Predictable fixed payments
- Often large enough for major purchases
- Payments over time can improve your credit
- Typically not backed by collateral
If you decide that a personal loan is right for your financial situation, please contact our branch location nearest you to start the application process. You can complete your loan application online, and your local branch or affiliate will contact you in as little as 15 minutes.
We make the online loan process as fast and convenient as possible, so you can receive up to $1,500 to regain control over your finances and pay for what you need and want. Feel free to call us at 833-745-2710 with any questions!