Friday, April 28, 2006

A Personal loan or your credit card; what is the best choice?

Should you take out a personal loan or are you better of charging your credit card? If you have a short-term cash crunch and you have a credit card that offers a low fixed or introductory rate, you may be better off charging your needs instead of taking out a guaranteed online personal loan. Because personal loans are unsecured, the rates tend to be higher than other types of loans even at traditional lenders, much less at payday lenders. Want some guaranteed loans advice? If your credit card rate has a lower rate than what you can get on a personal loan, use the credit card. HOWEVER, you must pay the card off before the introductory rate expires. If there is no introductory rate, you must pay the card off within two years. That means paying much more than you would if you were paying the minimum rate alone. Figure out what your monthly payment would have been for the personal loan, and pay that amount or more each month to pay off the debt.
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2 comments:

Linda John said...

Yes personal loan are you better of charging your credit card...

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plindia said...

Personal loan is the better choice than credit card. Credit card is available to public for all short term needs and once its principal amount is not paid,consumer have to pay heavy interest rate fro that.On the contrary note, personal loan is available at low Personal Loan Interest Rates. It provides longer duration to consumer so that person can pay loan amount easily.