Top 5 Reasons to Opt for a Personal Loan Instead of Credit Cards

In case of any financial emergency, there is constant confusion about whether to use credit cards or avail of instant personal loans. This might seem like a basic decision to be made, however, it can be quite complex. 

The reason behind the complexity of this decision is the pros and cons of using both options which can vary greatly. If you are also confused between the two, then this is the right place as we are going to help you understand which option is good for you and which one is not. 

What are Instant Personal Loans?

To start this debate or discussion and find out which option is best suited for you in today’s time, let’s first understand the basics of personal loans and credit cards. Instant personal loans are readily available these days with all the instant personal loan apps. 

Personal loans are also easy to get as there are no interest rates involved and with the online application process, the approval process has also become quite convenient. Furthermore, these instant personal loans come with easy repayment options which further makes it convenient for users to avail of these loans and manage expenses easily.  

Pros and Cons of Personal Loans

For s better understanding, have a look at the table below.

Pros	Cons
Easy availability, quick approvals	Includes charges or fees which can be high at times
No interest rates, no collaterals required	Only a limited amount is available
Easy repayment structure	No rewards as available upon using a credit card
Availing personal loans helps to build and boost your credit score	Can reduce your credit score if repayment is  not done on time

Why Use Credit Cards?

Taking this debate ahead, now that we know a bit about availing instant personal loans for your financial emergencies, let’s have a quick look at the basic details of using a credit card for your financial needs. 

With a credit card, there are a lot of charges included such as a joining fee, annual fee, and various other charges that are to be paid every year. Additionally, upon swiping your credit card for any purchase you get your monthly bill, which if missed, you are charged with a percentage of interest rate on the initial amount. 

This interest rate keeps on increasing, making it difficult for you to catch up and manage your finances. Also, using your credit card offers you various reward points which you can redeem upon a certain amount. 

Pros and Cons of Credit Card

Below are additional pros and cons of using a credit card for your purchase which can help you make a defined decision. 

Pros	Cons
Readily available for use anytime, anywhere	Higher interest rates
Offers rewards and cashback offers upon every use	Missing repayment deadlines can pile up with high interest rates, making it difficult to manage
Repayments can be done fully in a one-time payment to avoid any charges	Missing repayment can reduce your credit score

Comparing Credit Cards and Instant Personal Loans

Now that we have acquired some basic details of both options, let’s have a comparative look at using credit cards and instant personal loans for managing your emergency financial needs. 

Instant Personal Loans	Credit Cards
These are easily approved and readily available for use	Easy availability and credit card approval
No interest rates, only include a minimal convenience fees	Consists of interest rates, joining fees, annual charges, and others
Easy repayment can be made with a few clicks	Easy repayment option of one-time payment
Minimum documentation required for the application process	Easy application process with your bank
Various options are available to choose from	Can apply with different banks depending on their terms and eligibility criteria
A high amount of personal loans can be availed	Can only be used up to the pre-approved limit

Final Decision

Based on the above discussion and the comparison you can now make a sensible decision as per your needs and requirements of finances. Furthermore, if you are looking for options to avail yourself instant personal loan online platforms are available such as FatakPay. 

This instant personal loan app is available for you to download and avail yourself of an instant personal loan. With FatakPay you get minimum documentation to get loan approval and for your loan application. 

Additionally, there is no interest rate, only a minimal convenience fee that is to be paid. Along with this, for small amounts of personal loans, you are required to make the entire repayment in one single payment. However, if you avail of a large amount of personal loan you get an easy EMI structure which allows you to manage your finances easily. 

Conclusion

It depends on individual choices, preferences, and requirements for which mode of payment you are to use. From the above discussion, you can clearly understand which option is more suitable for you as per your needs. 

Furthermore, if you wish to go with the instant personal loan option, download the FatakPay app today and explore the available loan options depending on your credit score. Download the app today and get your instant personal loan approved within minutes. 

Unsecured vs. Secured Personal Loans: Which One Should You Choose?

Personal loans are a popular choice for availing instant funds for any financial emergency. However, there are different categories of these personal loans such as secured and unsecured loans. 

The names might give you some hints about these two categories of loans, but we are going to help you understand which one you should choose in case of an emergency. 

Understanding Secure and Unsecured Instant Personal Loans

A secure personal loan is one where you offer some form of security or collateral to the lender in exchange for the loan amount. These are named secure personal loans as you are offering these collaterals as form of a security to the lender in case you fail to repay the loan amount on time.

Moving forward, secure loans serve their benefits such as:

• Low Interest Rates

One of the major benefits is lower interest rates as compared to unsecured loans where you have to pay a higher interest rate for the loan amount. With secure loans, the interest rates go to a lower level due to the security of collateral given by the customers. 

• Higher Loan Amounts

With secure personal loans-there is a higher sense of security. Hence, you can get a higher loan amount approved for these personal loans. These loan amounts can further be increased depending on the asset being used as collateral. 

• Long Tenures

Another major benefit of opting for a secure instant loan online is that you get longer loan tenures which enable you to manage all your finances easily and ensure that you have enough time to repay the loan amount. 

• Reduced Risk

Since you have already given collateral for your loan amount, the risk involved is reduced for the lenders, making the whole process simple and convenient for the lenders and for users as well. 

• Convenience 

These loans are convenient to avail of and ensure that the users get an enhanced overall loan experience throughout the process, without any hassles and issues. 

Now that we have gone over Secured Loans, let’s have a look at Unsecured Loans.

Unsecured loans as the name suggests are not secure as there is no collateral involved in the process of the loan. Here the customer doesn’t provide any collateral to the lender in exchange for the loan amount, hence, experiences certain disadvantages as compared to secured loans. 

Here the lender is going to use some external factors to verify your repayment capacity such as your credit score, credit history, and income to ensure full repayment of the loan amount. Given below are some more features that you can experience with unsecured loans:

• Higher Interest Rates

One of the first points to mention here is the higher level of interest rates that you can experience here. With unsecured loans, a high interest rate is commonly observed to reduce the level of risk for the lender. 

• Higher Risk

Since there is no collateral there is a huge risk involved for the lenders in the whole process which makes them less favourable for lenders to offer you the loan amount.  

• Quick Approval

As there are no assets or collateral involved in the process for evaluation, the loan approval is quite easy and quick. This is done based on your credit score, your income, and repayment capability. 

• Reduced Loan Tenure 

With higher risk, your loan tenure is also reduced to ensure that there are no missed payments or late payments for the lenders to ensure complete repayment. 

• Reduced Loan Amount

Lastly, you get lower loan amount approval in unsecured loans due to the level of risk involved and lack of security for the lenders to get their money back in case of any missed repayments. 

Based on the above points it is quite simple and easy for you to understand which loans are to be availed in any emergency. Additionally, it is important to find the perfect platform or app to get your instant loans as per your needs.

If you are looking for a personal instant loan you can opt for FatakPay for easy loan approvals, flexible loan repayment structure, loan amounts as per your credit score, minimum documents required, along with a safe and secure platform backed by RBI-registered NBFCs to uplift your overall loan experience. 

Conclusion

For availing instant loan online it is advisable to go with a suitable platform like FatakPay and get your instant personal loan with all the available features and best offers in the market. Furthermore, you can choose among the two options of secured and unsecured loans depending on your specific needs and requirements. 

For more details, you can download the FatakPay app today and explore the available options and offers. 

FAQs:

1. Are instant personal loans secured or unsecured?

Instant personal loans are unsecured loans as there is no form of collateral included and these loans are given based on your credit score and repayment history. 

2. What are the steps to apply for an Instant Personal Loan?

To apply for an instant personal loan- first download the FatakPay app and enter the required basic information. Now based on your credit score and history, you will get a loan offer. 

3. What is the eligibility criteria for an  Instant Personal Loans?

Higher credit score, good repayment ability, high creditworthiness, and a government-issued ID for verification, along with a minimum age, and salary background are some of the basic eligibility criteria for instant personal loans. 

Top Small Credit Lenders: How to Choose the Right One for You

Imagine a scenario where you are in sudden need of funds, but you don’t wish to use your savings for this purpose. Now you can either go to your family or friends and borrow some money, or leverage advanced technology and avail a small credit loan. 

Be it any sort of financial emergency a medical emergency, a home renovation, a sudden trip, or a purchase that you wish to make. Leveraging online platforms for availing small credit loans can help you tackle these situations easily. 

Now, we have already talked about availing instant loans online before, so how are these small credit loans any different? Moving forward with this discussion, we are going to have a detailed look at these small credit loans online and understand how you can ensure to pick the most suitable option for you. 

Why Avail Small Credit Loans?

Small credit loans are an essential part of managing your financial emergencies. These are not only readily available but are also easy to manage and return on time, ensuring no penalties or late fees. Additionally, with small credit loan apps and lenders, you can avail of these small credit loans at lower interest rates (further depending on your credit score) to manage your financial situation. 

Below are some of the major benefits that help you understand why one should invest in small credit loans. 

• Fast Approvals

With small credit loan apps like FatakPay, you get fast approvals for your loans, enabling you to manage your financial situations seamlessly. 

• Readily Available

A plethora of options and lenders are available in the market for small credits, which makes these loans easy to avail and readily available to ensure your financial emergencies and resolved quickly. 

• Flexibility 

A small credit loan comes with flexibility in terms of loan amount, loan tenure, interest rate, and repayment plan. All these points ensure that you can easily avail of the small credit amount as per your needs and ensure to resolve any emergencies. 

• Convenience 

Lastly, these small credit loans offer you the great convenience of availing loans in the comfort of your home and without any hassle of standing in queues or heavy documentation. 

With the above-mentioned points, it is clear that availing of small credit loans can help you significantly to manage your financial emergencies. 

Picking Ideal Small Credit Lender for Your Needs

Moving ahead with our discussion, let’s have a quick look at some of the major points that need to be considered while picking out the right small credit lender for your needs. 

 

• Interest Rate

The first point is to ensure that you carry out thorough research for all the lenders and compare the interest rates of all the lenders. This will help you understand which lender is most suitable for your needs. 

• Hidden Fees

Ensure that there are no hidden fees associated with the lender for availing these small credit loans. If there are any charges with the lender ensure that you know about it beforehand instead of it coming to you as a surprise. 

• Loan Terms and Conditions

Ensure to compare the loan terms and conditions such as loan amount, loan tenure, any EMI structure, and other eligibility criteria as well. This can help you have a better understanding of the offerings from the lender and ensure that you pick the best lender for your needs.  

• Repayment Structure 

Ensure to have a close look at the loan repayment structure being offered by the lender. If there are EMI structures available for large loan amounts or not. Understand the loan repayment methods as well for an in-depth understanding. 

• Data Privacy

Lastly, ensure data privacy and choose a lender such as FatakPay where there is no risk of data leak or misuse, and your personal data is completely protected with the platform. 

Best Small Credit Lender 

One of the most trending names in small credit loan apps these days is FatakaPay due to its offerings, and reputation of being a safe, secure, and easy-to-use platform. This platform is backed by RBI-registered NBFCs which are secure to be used and enable the users to have a seamless experience of availing these small credit loans. 

Furthermore, here small credit loans are being offered depending on your credit score which makes it simple and convenient for the users to get these loans approved. These loans are available with a minimum documentation for further ease of getting loan approval. For more details, you can download the app today and get your small credit loan approved today. 

Conclusion

For all your financial crises and needs getting small credit loans from lenders like FatakPay can help you get the desired amount for instant use. Additionally, this platform is safe and secure, ensuring an enhanced experience for the users, enabling them to get access to funds easily and manage their financial requirements. 

FAQs:

1. What are the benefits of taking out a small credit loan?

Small credit loans are easily available which adds to the benefits of getting easy loan approval, flexibility, and fast approvals. 

2. What types of small credit loans are available?

Small credit loans include personal loans, payday loans, vehicle loans, and unsecured loans. 

3. How can I improve my chances of getting a small credit loan approved?

To improve your chances of getting a small credit loan approved ensure you have a high credit score, no pending loans, zero penalties, and availability of required documents. 

When to Consider an Instant Personal Loan for Emergency Expenses

No one knows when you might encounter a financial crisis or an emergency in your life. We all know that life is unpredictable and anything can happen. But it is important to be prepared for handling any such situation be it any financial crisis. 

One of the best ways to be prepared for these emergencies is by availing a personal loan online. Yes, we understand that talking about getting a loan might seem challenging, chaotic, and huge, but it is not. 

Moving forward with this discussion we are going to ensure that you understand the scenario and can evaluate based on your financial situation when you can avail of a low-interest rate personal loan and understand the basic requirements of applying for an instant personal loan online. 

Why Go with Personal Loan Online?

We all know that personal loans are a form of unsecured loan that you can easily avail without any collateral, based on your credit score. These features make personal loans one of the best options to be explored for any financial emergency situation. 

With the plethora of options and lenders available in the market, you can explore and ensure you have the best offers available. 

Here are some major reasons to avail of personal loans online for a financial emergency. 

• Available Readily 

The nature of these personal loans makes them an easy option to access in case of an emergency. These loan amounts are available instantly which is one of the key highlight features as well. 

Additionally, these loans are usually approved within a short period of time which further adds to the convenience of the users and ensures that they can have funds available in case of any emergency. 

• Minimum Documentation

With minimum documentation this process of availing personal loans adds to the convenience for the users. 

• No Collaterals Required 

Since it is a personal loan the users are not required to put any collaterals for the loan which makes it unsecured while also making it convenient for the users. This Having no need of collaterals makes the entire process of applying and availing of laon simple, easy, and secure for the users. 

• Flexibility of Use

The personal loan amount being availed can be used for a wide range of purposes as this amount offers you flexibility of range. It can be used for travel plans, shopping, emergency hospital payments, education, or any other use as well. 

• Easy Repayment Plans 

With personal loans being availed in case of emergencies, these loan amounts can be repaid in a flexible manner. Lenders like FatakPay who can offer you personal loans offer you a flexible repayment structure with full monthly payment and EMI structure (for large amount of loans) as well. 

Taking Low Interest Rate Personal Loan

Moving forward with the discussion, let’s have a look at all the scenarios in which it is ideal to take a personal loan online. 

• Major Purchase

If you are planning for a major purchase that might take a large amount of your savings. To avoid burning out your savings then avail of personal loan online and make your purchase with these online personal loans. 

These loan amounts vary depending on your credit score and the lenders that you are working with. Hence, explore all the available options to ensure you pick the best possible lenders and offers in the market. 

• Travel Plans

While making travel plans, there is no need to exhaust your savings, instead take personal loans from these online lenders and enjoy your travel. You can return these amounts without any issues and ensure that you have a relaxing travel experience. 

• Educational Purpose

For your educational purposes as well you can avail of these instant personal loans and ensure that your education is never hindered.  

• Health Emergency

Lastly, you can use these personal loan amounts for any sort of health emergency be it buying medicines, paying doctor fees, or any other expenses related to your health. All this can be easily managed by availing of these instant personal loans. 

Low Interest Rate Personal Loan App: FatakPay

Among the lenders that are available in the market, FatakPay is one of the best platforms available for you to avail instant personal loans online. With this platform, you can get the loan approved within a short span, and get loan amounts based on your credit score. 

Furthermore, this platform offers you minimum documentation, and easy repayment plans with full monthly payments and EMI structure as well for the user convenience. For more details, download the app today and explore the additional features of the platform before applying for your instant personal loan online. 

Conclusion

For any sort of financial emergency and crisis, availing an instant personal loan is one of the best options available and with all the lenders available in the market you can explore all the options and pick the most suitable one for your use.