Credit Cards And Personal Loans Essay

Credit Cards And Personal Loans Essay

Length: 1498 words (4.3 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

If you need money for something other than your living expenses, then credit cards and personal loans may be the way to go. If you need money for your living expenses, then you need to improve your budgeting, and you may benefit from an overdraft rather than a personal loan. An arranged overdraft may be suitable if you are having money troubles. If you are having trouble making ends meet, then credit card or personal loan is not the answer because they will increase your monthly outgoings, which will make it harder to make ends meet. Is one line of credit better than another?

H3 How Easily May You Get A Line Of Credit?

If you apply for a personal loan with your current bank, then you will probably get it. They may not offer you very much money, but you will probably be approved. If you apply for a personal loan with another company, then they will probably look at your credit rating and say no. On the flip side, if you were to apply for a credit card with any old company, most of them will say yes without knowing very much about you.

H4 Personal Loans Are Harder To Get

A personal loan is going to give you a lump sum, which is a risk for the bank, and it is going to have a nicer interest rate, which lowers the potential profit that the bank can make from you. Giving you a personal loan is risky for a bank, which is why they want to know lots about you, which is why they want to know your personal details, and why there is so much paperwork to do.

H4 Credit Cards Are Easier To Get

You may receive letters through the mail where you may apply for a credit card and get it. Credit card debt is so difficult to get out of that the companies issuing cards do not mind if a few people let them down and do not pay them back....


... middle of paper ...


...% to 99%. Credit cards are easier to get because they have higher interest rates and they offer a means of credit that makes it difficult to get out of debt. Personal loans give you a cheap way of getting into debt, and it is not very difficult to get out of debt with personal loans.

Conclusion - Which You Should Use Depends Upon Your Circumstances

As you can see by the article written above, it depends on your needs and your circumstances as to if you get a credit card or a personal loan. For example, if you have a terrible credit rating, then a credit card may be all you can get. On the other hand, if you want cheap debt, then you may use your good credit history to negotiate a lot APR rate on a personal loan. Credit cards and personal loans have their own pros and cons. It is up to you to pick which suits you the best and which may cause you the most problems.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Credit Scoring Model For Student Loans Essay

- Introduction Credit scoring models play a crucial role in identification, determination and quantifying risk measures for all financial institutions, particularly credit risk at both counterparty and transaction levels, for example, corporations, small businesses and private individuals (Sabato, 2010). The shift in education policies by most countries has evolved over time from grants and scholarships provided to limited, well-achieving students to more opportunities for all in the form of student loans (Woodhall, 1998)....   [tags: Debt, Loan, Interest, Credit]

Better Essays
1458 words (4.2 pages)

Personal Note On Bad Credit Essay

- Bad credit can happen to anyone. Unexpected medical expenses, a sudden job loss, or even just youthful indiscretion with credit cards can quickly destroy a decent credit score. At ABC MotorCredit, we understand that there are plenty of good, responsible people who have less than perfect credit scores. Even if your credit has some problems, you still need a car and ABC MotorCredit can help make it happen. Read on to learn more about why when you shop with ABC MotorCredit, you shouldn’t worry too much about your credit score....   [tags: Credit score, Credit, Credit history]

Better Essays
700 words (2 pages)

Essay on Tips For A Better Credit Score

- 8 Ways to a Better Credit Score Building credit is a vital aspect of financial health. If you have bad or no credit, there are many things you can do to improve your financial standing. 1. Never pay late If you miss a payment on a loan or credit card, it will show up on your credit report and lower your score. Avoid this problem by always making payments on time. It may help you to set up online bill pay or automatic payments. Additionally, use a planner or calendar to stay organized and keep track of due dates....   [tags: Credit card, Credit history, Credit]

Better Essays
707 words (2 pages)

Notes On Personal Finance And Credit Card Essay

- Credit Card Importance There are many different topics about personal finance that are important to me but the one that sticks out is Credit Cards and Debt. This is important to me as a college student because Credit Card companies tend to target students. They do this because they know they are into the new trends and don’t always do research when it comes to interest rates, and polices that credit card companies have. Many students just sign up before reading what they are getting their self’s into....   [tags: Interest, Debt, Credit history, Loan]

Better Essays
1088 words (3.1 pages)

Essay about What Does Credit Score Means?

- What does Credit Score means. Credit score is the way different credit entities rate how responsible is the person at the moment of spending or paying bills. In the United States, the credit is simply one of the most powerful keys to get things we all want or need for our lives. To make a point, I am going to ask you to picture the house of your dreams. Then think how are you going to pay for it. The answer is, unless you are lucky enough to hit the lottery, the only other way is financing it, but not everyone has an A1 credit....   [tags: Credit score, Credit history, Credit card, Debt]

Better Essays
928 words (2.7 pages)

Persuasive Speech On Credit Card Debt

- Abylay Zhakashov Persuasive Speech Outline I. Introduction: A. Attention Getter: How many of you have credit card debt. An average American household has credit card debt of $10,000. B. Audience Relevance: Credits cards are something that most of us here use almost daily; however, the knowledge about how they work is floating on the surface. C. Credibility: Personally, I am very cautious when it comes to money and personal finance. I want to know everything about the financial tools I use. That is why I read two short books before I even applied for a credit card....   [tags: Debt, Credit history, Credit rating, Interest]

Better Essays
895 words (2.6 pages)

Effects Of Personal Financial Knowledge On College Students ' Credit Card Behavior

- Effects of Personal Financial Knowledge on College Students’ Credit Card Behavior Cliff A. Robb and Deanna L. Sharpe began their article “Effects of Personal Financial Knowledge on College Students’ Credit Card Behavior” with clarification regarding the study and also a succinct historical introduction to the ‘invasion’ of credit card companies on college campuses. Their study was based on the analysis of survey data composed from 6,520 students at a grand Midwestern University. This study revealed that financial knowledge was a compelling factor in the credit card decisions regarding college students....   [tags: Debt, Loan, Credit card, University]

Better Essays
1137 words (3.2 pages)

The Issues of Credit Essay

- 1. Introduction This report has been compiled at the request of Katarzyna Grzesiak, and is to be submitted 22 April 2014. It analyses the issues of credit and debt amongst young people. The report details what credit is and the different types of credit and the causes of debt amongst young people. Moreover here are two figures unemployment rate. 2. The information shown in this report was gathered from the following sources:  http://www.cleardebts.co.uk/causes_falling_debt.html  http://www.poverty.org.uk/35/index.shtml  3.1 Credit It is debtor's ability and intention to repay....   [tags: Common Debt Among Youth]

Better Essays
911 words (2.6 pages)

Essay Loan Loans From The Bank

- Bank loans are loans from the bank which is based on the future value of the business. Banks are very particular when it comes to granting loans because they want to be sure that the borrower will be able to repay. In some situations, if the loan is not repaid to bank can take possession of the borrower’s personal assets. Even though the bank pays for the business, they do not take possession of the establishment. Figuratively, when Joe Smith pays off the loan, he doe not have any more ties with the bank, unless he asks for a subsequent loan....   [tags: Debt, Loan, Credit, Business]

Better Essays
1389 words (4 pages)

Use Good Budgeting : Eliminating The Need For Costly Online Installment Loans

- Use Good Budgeting to Eliminate the Need for Costly Online Installment Loans Use Good Budgeting to Eliminate the Need for Costly Online Installment Loans There are many kinds of online installment loans that include bad credit installment loans for people with low-to-medium credit scores. These loans can prove to be lifesavers when financial emergencies arise, but they often carry high interest rates. Over time, the extra money that you spend servicing your debt can easily generate severe financial difficulties, so it’s always advisable to pay off online installment loans as quickly as possible....   [tags: Debt, Personal finance, Credit, Credit history]

Better Essays
1146 words (3.3 pages)