Is It Better To Get A Loan Or Pay With A Credit Card?
If you need to borrow money to pay for something, you can get a loan or use a credit card. In this article, we’ll look at which option is best for you.
Both credit cards and loan are great ways to help pay for items when you are a little short on funds. They also have interest and fees associated with using them. So deciding which one of the two types of payments is best for your needs can be a little tricky. Fortunately, there are some ways to determine which is best.
When Should You Pay With A Credit Card?
A credit card is a great option for everyday expenses. As most credit cards have high-interest rates, you don’t want to use them to pay for items that will take you months or years to pay off. You should consider using a credit card when:
- You just need a couple of extra dollars to cover groceries, gas or other regular purchases
- You need to borrow what you can pay off within a month
- You qualified for 0% interest promotion
Credit card are great to build your credit, earn benefits like airlines miles, and to use during no or low-interest promotional periods. However, they often come with high-interest rates and can cost a lot of money. Here is a comprehensive list of pros and cons of credit cards.
When Should You Get A Loan?
Loans on the other hand, are great options for large expenses and big purchases such as a car, or a home improvement project. Loans are usually used for expenses that will take a longer time to pay off. You should consider using a loan when:
- You need to finance a large, one-off expense
- You can commit to regular monthly payments
- You can obtain a loan with a low-interest rate and low fees
Loans are excellent to pay for large items, stay on a budget and build your credit over time. However, our Access Loans product is a little different. It can be used for smaller emergency expenses, the approved process is fast and the rate if fixed.
Whether you use a credit card or a loan will depend entirely on your unique financial circumstance. They both have benefits and downsides. Learning the nuances between the two can help guide you to the right one for your specific needs. If you are looking for an emergency loan, our team can help you. Give us a call at 1-888-287-9483 and we’ll be happy to answer any questions you have.
