Which one should you choose - Personal Loan or Credit Card Loan?
Here are a few comparisons between a personal loan and credit card loan:
- You need to submit a few documents and complete a simple verification process to get a personal loan. However, there is no need for additional documentation in case of a credit card loan, as your lender already has your details.
- You can borrow a larger amount with the help of a personal loan. A credit card loan is suitable when you need small loan amounts.
- Personal loans have a longer tenor while credit card loans are ideal for a shorter period.
- You do not need to pledge any collateral to apply for a personal loan or credit card loan as both are unsecured loans.
- Personal loan interest rates differ from credit card loan interest rates. Lenders also apply processing fees and other charges, so find out and compare these details before you make a decision.
First analyse the sum of money you require. Then check if the tenor suits you and the repayment is feasible against the utilization of the loan amount. For a small monetary emergency, a credit card loan can prove to be the best. But in case you need a big amount, then opt for a personal loan.
How do lenders decide Personal Loan eligibility?
What is CIBIL Score?
How to calculate foreclosure of Personal Loan?
How is interest calculated on Personal Loan?