“I need money: is it cheaper to ask for a loan or a credit card? ”It is a question that more people ask than you imagine, because cash is not always available to deal with all payments that may arise. So below we will analyze the advantages and disadvantages of each of the options, so that you choose the best financial product.
Credit card vs loan: which option is cheaper?
Your washing machine is broken and you have no money, what do you do? At that time there are two options: buy it with the credit card and have it charged the following month or ask for a personal loan to get out of the financial trouble.
Which is better option? Apply for a credit card or a loan? It all depends on the specific needs of the person.
Why choose a personal loan?
In a personal loan a certain amount of money is requested, at an interest rate and a deadline is set for repayment. From the moment of your request, every month we commit to the financial institution in question to pay the monthly fee, until you return the borrowed capital along with the interest.
It is a financial product designed for those who need an amount of money immediately, in order to face a series of payments, debts, purchases, whims …
Normally, the interest payable depends on the time it takes to return it. So, if you want it to be cheaper, the sooner the better.
However, not all financial institutions offer the best conditions, much less. In the case of Good Financial Loans, we compare the best options between the different companies and offer our clients the best, with the lowest possible interests and without small print.
So getting a personal loan at Good Financial is always going to be cheaper, since we compare and negotiate with top entities to offer you the best, totally personalized for you.
Why hire a credit card?
The alternative to the personal loan is the credit card. And in the case that it is a timely expense due to an unexpected purchase, the card is the best possible solution; since it allows you to make purchases and pay them a month later with total peace of mind and comfort.
The credit card has an annual cost that varies depending on the financial institution where it is requested. Normally, it is around 40 euros per year.
But thanks to Good Financial you can get your free credit card , since we compare and negotiate with the leading entities to get you the best among the main cards in the market. No annual maintenance fee and insurance included. In addition, you decide how to pay: all at the end of the month or at your own pace.
So … Which option is cheaper?
It all depends on the interest rate . In the credit cards the type is usually fixed and in addition it is necessary to add the annual cost that supposes. But if you request it at Good Financial it is free, both the management to get it and the cost of maintenance. However, in the case of loans you have to consult the APR type, which depends entirely on the financial one. Apply for your personal loan or credit card at Good Financial
Do you need to have money right away and do not know which option is best for you? If you call us any of our financial advisors can lend you a hand, so that you know in advance and without compromise which option best suits what you need.
Keep in mind that if you prefer to postpone purchases and pay for them next month because you will have money to do so, the credit card is a better option and will be cheaper. However, if you do not know when you will recover again, it is better than options for a personal loan.