The fulfillment of your needs may not always be based on the availability of current financial resources or accumulated savings. Financing options are many, and loans and credit cards are among the most popular. However, many people wonder how to use them and is it worth it? And if so, which one will be better?
Cash loan – quick money in a crisis
The idea of online loans quickly spread around the world and gained considerable recognition on it. No wonder – it’s the easiest and fastest way to get funding. Such loans are mainly supported by the possibility of submitting an application and signing an online contract. In turn, the unusual way of applying for a loan allows for a very quick decision and minimum formalities while maintaining all safety standards.
Currently, the loan market is very large and already meets the needs of the majority of society – so it is available to many people from every age, professional and social category. The choice is therefore huge, as is the range of amounts and repayment periods – you can count on tens of thousands of zlotys and dozens of installments (up to 48 in Super Cross and 60 in Ponga). In addition, such loans are so popular that you can easily use the tools to help you make decisions: loan comparison, thematic articles, forums, assessment systems. Therefore, the average consumer should not have problems with getting such loans and using the best for themselves.
Why is it worth using a loan?
The biggest advantages of loans are:
- the option of spending money for any purpose;
- speed of obtaining a decision;
- the option of contracting a commitment;
- relative ease of obtaining, even with low creditworthiness;
- various ways to defer payment without incurring consequences – e.g. loan holidays, refinancing, extension of the repayment period;
- very high availability;
- the possibility of using a free payday loan or even an installment loan.
Unfortunately, you have to reckon with the fact that regular online loans are quite expensive. On the one hand, this is a compensation for smaller requirements compared to bank cash loans, but also a guarantee for loan companies in the event of a lack of repayment by borrowers. Non-interest costs, such as commission, can be particularly troublesome. The interest rate on loans is usually fixed and amounts to a maximum of 10% per annum. Therefore, defaulting on a loan will have very serious consequences, and the borrower must take some risks into account and take into account that:
- loan repayment can be long-lasting;
- sometimes it is difficult to choose the right loan parameters so that you can pay it back easily;
- it is not possible to use the interest-free period.
Maybe a credit card?
A credit card is undoubtedly a very convenient replacement for loans and cash loans, especially since it is always at hand. Actually, if you stick to strict terminology, it is also a type of consumer loan, although it is primarily used for cashless transactions (you can also withdraw money from an ATM and transfer funds from it to your account, but it is quite expensive). That way, if you can get this type of financing, you can use it whenever you need it. The method of its use is also not complicated – it is paid exactly like a regular payment card to a bank account.
Does credit card have an advantage over loans? Yes, at least one – you can use it without having to pay any fees. We are talking about the so-called non-cash period, which gives the opportunity to cancel interest if the card’s debt is repaid within the prescribed period, usually several dozen days. Even if this period is exceeded, the interest rate is not particularly high and is usually around 10% per annum. If the credit limit used on the card is large, it is usually allowed to repay this obligation in installments.
Pre-paid loan – a perfect combination
It should be remembered, however, that the conditions for granting a credit card are similar to those for a bank cash loan – the problem with obtaining a card may therefore be people with low creditworthiness, i.e. those who usually turn to non-bank institutions. Another disadvantage of the card is the fact that although the interest rate is low and you can use the interest-free period, the fees for using it are not among the lowest.
If you want to take advantage of all the benefits that a credit card gives you, but you can’t get it, you can take advantage of the benefits of a prepaid card loan, even available on the Thirteen Card offer. With this card you can freely pay for all purchase transactions, withdraw cash at ATMs, and pay interest only for the amount that you use. We have already written about this type of loan and how to get it in the article “Prepaid loans. When should you use them? “