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.