You might be having some financial constraints that might require a loan to keep you right on track. Therefore, between loans and credit cards, which is the best? They both can help in funding what you want; it may be school fees issues, a new car, a new house and many more. Below are a few pro and cons to assist you in deciding which is right for you.
Money transfers: One of the good things about credit cards is that either money can be transferred to or from your bank account, with lower rates as compared to taking a loan. You can inject the cash from your account any time; this is helpful in the case that will not have to pay interest if you borrow cash for two years or more.
Consumer protection: You can buy anything with ensured protection; you are not liable to what happens to your card if something goes wrong.
Low credit limits: Using the card is limited on the amount of cash that you require, if you a purchasing a costly item you might have to get the money from the bank.
Large borrowing of cash: As compared to a credit card, you are allowed to borrow a large sum of money.
Flexibility: You can choose the time in which you can pay the money borrowed, it can be in installments over the years. It does not matter it all depends on you.
Higher rates for small sum borrowed: This is a very big downside concerning loans.
Fees: There is added interest of two to three months’ in case you might want to pay off your loan early, which is very costly.
They each have their disadvantages and advantages, but the question still remains. Which is the best for you?