A loan can be a solution if we have financial difficulties. If we only need a smaller amount, a credit card can be the optimal solution instead of a loan. Personal Payday Loan or Credit Card – Which to Choose if We Need Money? Make money with a credit card.
Personal Payday Loan, Credit Card – Which to Choose if We Need Money?
We know the terms of Personal Payday loans. The financial institution will give us money in order to solve our financial difficulties once the conditions are met. The amount granted is between € 500 and € 30000.
Since the loan is non-Personal Payday, borrowed money can be used for anything.
However, there is another way to get money quickly. It is a credit card that, if we use it sensibly, will help us solve smaller financial difficulties and, in addition, earn a little.
Credit card – can also be of benefit to you
Many people think that credit cards are dangerous, because in case of carelessness we spend much more money than we can afford. The truth is, in most cases, a credit card can be a helping hand in short-term financial difficulties, and in the hands of a reliable user, a useful home help.
Even a credit card is a loan
The credit card looks exactly like a standard credit card, and we can pay for it in both retail and online stores, at home and abroad.
What is the difference?
The loan application and credit card are very similar, but there are significant differences between the two products. Credit cards do not have the benefits of lending. With credit card we can:
- participate in loyalty programs
- get travel insurance
- get discounts on purchases at certain stores
- get other benefits.
With these benefits, we can earn a decent amount each year. This is because it is also beneficial for banks to use the credit card as often as possible.
What is the nature of a credit card?
A credit card is the same plastic card as a payment card. But there is a significant difference between them. Using a credit card, we do not use our own money from our own account, but the bank’s money up to our credit. Just like a loan, a credit card is not intended.
The size of our credit depends on the rating of the bank and the rating from the amount of our monthly income and payment morale. Usually, the bank will approve us up to three or four times our monthly income, but there may be problems if the cardholder does not control himself and starts buying more than he can return within one month.
What is the risk of a credit card?
The credit card RPMN is high enough for the amount of credit used that we will not pay by the specified date the following month. In the ads, they tell us that using a credit card is free, but that is only true if we return the amount used to that date on the following month the following month. The bank will charge interest on the remaining amount.
Credit card is a good solution for financially restrained, not for others
If we use more of our credit per month than we can return in the following month, the bank will charge us interest. This will make our outstanding amount even higher and we can get into a very unpleasant situation. We will pay interest and the principal will only decrease very slowly.
Do not withdraw cash from an ATM with a credit card because it will not pay!
For selected cash, the bank charges interest until we return the amount. Therefore, we do not recommend this step at all.
How to apply for a credit card?
Usually we apply for a credit card at a bank, but we can also make a phone call, via internet banking or mobile banking. They will need the following documents from us:
- identity document,
- Proof of income,
- without negative entries in registers
- bank statement for the last three months
- and other.
Once approved, we’ll learn how much credit we’ve received from the bank.