Can I borrow Insta Personal Loan to clear credit card debt

Use an Insta Personal Loan to pay off your outstanding credit card bills quickly and easily.
Can I borrow Insta Personal Loan to clear credit card debt
5 min read
20 April 2023

Credit card usage has become an integral component of our way of life. Credit cards are a dependable source of funds for making purchases, paying for services, funding vacations, and handling emergencies. With the help of a credit card, you can incur expenses immediately and pay for them on the due date. However, if you do not pay your credit card balance on time, the card issuer will charge you additional interest and late payment fees. Typically, credit card interest rates can be quite high and get unaffordable and may end up harming your credit ranking.

If credit card debt is weighing you down, you may want to consider a personal loan to clear your credit card outstanding balance. One option for paying off credit card debt is to get an Insta Personal Loan.

Insta Personal Loan is the most recent financial product introduced by Bajaj Finance Limited. It was created to provide a quick and straightforward way to borrow money for all kinds of expenses.

Benefits of getting an Insta Personal Loan to pay your credit card bills

Let us take a closer look at how an Insta Personal Loan can assist with overdue credit card payments.

• Affordability

A credit card loan has an open-ended repayment period and an interest rate that fluctuates with monthly payments. This debt is referred to as revolving debt. Consider, for example, a credit card with a predetermined expenditure limit that you have nearly reached. In this circumstance, your monthly interest rate will be higher and will fluctuate until all fees are paid. Insta Personal Loans come with fixed monthly instalments. Therefore, Insta Personal Loan interest rates are lower than credit card loan rates. With a low-interest rate, you can save a significant amount of money each month, compared to having outstanding credit card payments. Thus, it is quite simple to use your Insta Personal Loan to clear credit card debt.

• Simplify monthly payments

If you have multiple credit cards, it can be difficult to keep track of due dates. Expensive debt can have a significant effect on an individual's financial situation. It can have an impact on your monthly budget because a majority of your income will go towards repaying this debt. An Insta Personal Loan can help you consolidate high-interest debt into a single payment. Once you have paid off this costly debt, you can repay the loan with affordable monthly instalments. Consequently, you can avoid all these issues by consolidating your credit card debt into a single Insta Personal Loan. You can make a single monthly payment instead of paying for multiple cards, which will be simpler to remember and manage.

• Credit limits

One of the primary advantages of using an Insta Personal Loan to repay credit card debt is that it can free up your credit limits. The available credit limit on cards has been set, but carrying a high balance can reduce your available credit and potentially harm your credit score if not paid on time. By using an Insta Personal Loan to pay off your credit card balances, you can potentially increase your limit and free up available credit. This can also give you greater flexibility with your credit cards, allowing you to use them for emergencies or urgent purchases without having to worry about exceeding your credit limit.

• Credit score

Your credit score is determined by several factors, such as your payment history, credit utilisation ratio, credit history, and so on. Not paying your credit card bills on time can negatively impact your credit score. If you resolve your multiple credit card debts with an Insta Personal Loan, your credit score may improve as well. Therefore, Insta Personal Loans is the best option if you have trouble keeping up with your credit card payments. This will help you maintain a good credit rating by ensuring that your monthly expenses are paid on time.
Insta Personal Loan offers funds of up to Rs. 12,76,500. You can borrow instant loans with disbursal between 30 minutes* to 4 hours. Existing customers receive pre-approved offers, while new customers can generate their pre-assigned loan limit instantaneously using their mobile number and OTP. It also simplifies managing repayment schedules with terms ranging up to 63 months.

Check your Insta Personal Loan offer to get the funds you need to pay off your outstanding credit card balance.

*Applicable for select customers

Frequently asked questions

Should I take loan to clear credit card debt?

It depends on your repayment capacity. Typically, outstanding credit card balance attracts much higher interest rates than personal loans. In such cases, it may be advisable to consider an Insta Personal Loan. Consider all available options before you decide on how to proceed.

What type of loan is used to pay off credit card debt?

You can use an Insta Personal Loan to pay off your credit card debt. Other options include a gold loan, or any other collateral-based loan.

How to convert credit card debt into personal loan?

You can simply take an Insta Personal Loan and pay off your credit card debt. This will allow you to consolidate your debt into one single monthly EMI.

What can you use an Insta Personal Loan for?

In addition to paying off your credit card bills, you can use a Bajaj Finserv Insta Personal Loan for a wide variety of expenses, including

  • Medical emergency
  • Wedding
  • Higher education
  • Home expenses

Our Insta Personal Loan has no restrictions on how it can be used.

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