Credit card or personal loan, which will be a better option?
With the advent of credit card, it has become very easy for people to make payments in times of need. At the end of the month, enough time is also given to repay the money. Not only this, if you spend money through credit card, then you also have the facility of EMI, meaning if you spend more money, which cannot be repaid in a month, then it can be converted into EMI. However, for this, processing fee and interest rate are charged along with GST. But it becomes easy for you to repay.
On the other hand, if you take a personal loan, then it takes some time to get it from the bank, until its process is completed. Then you can repay it by paying a fixed EMI every month. Amidst all this, let us try to know which option can be better for you.
Which is the better option?
The first thing is that whether you take a loan from a credit card or a personal loan, both come under the category of unsecured loan. What I mean to say is that if you want an unsecured loan, then you will be able to build your credit score only by taking loans of both categories.
The second thing is that for small expenses, a credit card is the best option instead of a personal loan. But if there is a big expense, then a personal loan can be a better option for that.
Another thing to keep in mind is that every bank charges different points and charges on credit cards. In such a situation, you have to decide for yourself which option is better for you.
Act wisely
Both have their own different benefits, it has to be seen how you are using them. If you book a train, plane or hotel room, then you are given certain points on spending with a credit card. In this, cashback is also given on credit cards. But when there is a need for a big expense, in that situation a personal loan can be a better option for you, where you get time to repay at a fixed interest rate.
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