Credit cards are another option if you need personal loan
Tuesday January 29, 2008
From time to time we all find ourselves in need a small loan for specific purposes such as car repairs or even medical bills. The amount may be too small for a personal loan application so a credit card can be a good substitute.
Advantages of getting a credit card account to use as a personal loan is that they are relatively quick and easy to have granted if your in a financial bind.
Credit cards are similar to a payday loan in that you can gain access to instant cash, however, you unlike a payday loan, not only do you have more time to repay the credit card loan amount that you took out but your repayments are more flexible. If you can't make the full payment then you can pay just the minimum monthly balance amount as stated on your credit card statement.
Disadvantage of using a credit card in this way is that you may find yourself only repaying the minimum more often than not and therefore your cash advance loan takes longer to repay.
The interest rate on a credit card can also cause you grief if you use your card to make cash advance withdrawals rather than make purchases.
Cash advances are charged interest from the time you take them out while a credit card purchase can see you receive up to 55 days free interest depending on which credit card you have and when you made your purchase.
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