Credit card, cash loan or cash loan?

Credit card, cash loan or cash loan?

Random accidents, urgent situations, urgent needs, in many circumstances the customer will need cash quickly for unforeseen or anticipated but one-off accidents. There is always enough funds in the household budget to send the dream 18 for a child, buy a gift for communion or add to the first car that the child will need.

There are different ways to get money. The bank offers various ways to borrow, but before making a decision, it’s important to know how each option varies.


Credit card

Credit card

Seemingly, a credit card seems similar to a payment card. You can pay with it in stores, using them requires a pin or contactless payment option. With an online account, you can make payments online or transfer funds. You can also withdraw money from an ATM, although this option is much less profitable. Despite many similarities, however, the difference is fundamental. You use your money, that is, money borrowed by the bank.

There is no clear debt repayment schedule, which is often seen in your online account. The bank does not specify specific repayment amounts or installments. The only limitation is the interest-free period, the exceeding of which is connected with accruing interest and additional fees.

Unlike other loans, the credit card is subject to an interest-free limit, so for a certain period of time included in the contract, the customer will not have to pay for the loan and if he repays within that period, he will only return the borrowed amount without additional charges.

The credit card itself is not free, despite appearances. You should pay insurance premiums, amounts for maintaining the account and just having it. The relevant contract, however, will ensure that the customer lacks some fees as long as he uses the card a certain number of times a month. Not using it generates more costs.

To obtain such a card, the bank checks the customer’s creditworthiness and credibility before carrying out the rest of the formalities.


A cash loan

A cash loan

Taking a cash loan sometimes requires a bit more formalities, especially if the client decides to borrow a larger amount. It is a one-time loan, at which the borrower immediately receives information about installments, interest rate and the period in which he will have to pay back the debt with interest. Installments can be repaid faster or if all cash flows in immediately. Exceeding the deadline for paying the installments is associated with penalties and additional costs.

A cash loan is not profitable for small expenses, such as everyday products or even small household appliances, although borrowing $ 200 and paying off debt regularly improves creditworthiness. Larger sums are more profitable for a customer to take with a cash loan, because the repayment will certainly exceed the interest-free credit card deadline, and the interest rate is much higher. The best loan offers can be found here.


Cash loan

money loan

In the last case, a cash loan, the person provides the client with cash for the time specified in the contract. After this date, the customer is required to return the money borrowed together with the payee’s remuneration. The deadline does not have to be specified and it happens that the loan is intended for an indefinite period. The contract then only covers the repayment obligation, not its due date.

An important difference between a cash loan and a cash loan is that the loan does not have to be offered by the bank. It can be any person, even a natural person, with whom the borrower will sign a contract.

Terry Jones

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