Credit Cards And Personal Loans Essay

Credit Cards And Personal Loans Essay

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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.

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