We can all use some financial help from time to time, especially if we have a large expense coming up. Using a credit card is a no-brainer and a lot of people don't think twice before relying on the convenience of just swiping the card whenever they need it and worrying about being the balance later. But what if there was another option - a better option, even? Why should you consider getting a cash loan instead of a credit card, and what are the benefits you can enjoy?
You Can Get More Money
First thing's first - you are interested in getting money, and if you need a larger amount, perhaps a credit card is not the best option for you. A cash loan can enable you to borrow more, because of the difference in criteria and borrowing terms.
You Have More Time To Repay
In addition, the way a credit card and the repayments are set up, you put everything you want on your credit card (within a certain limit), and then you need to pay off the balance at the end of the month. If you go over that time limit, you end up paying a high interest rate. The problem with this is that the time allotted for you to repay the money is short, but with a loan, you have several months at your disposal to pay the money back.
You Can Pay In Instalments
And speaking of repaying, a credit card balance needs to - ideally - be repaid in full. That can be difficult to achieve. A loan like this, however, allows you to repay in affordable instalments according to the agreement you made with the lender. Pay off little by little every month, without straining yourself or suffering deprivation in other areas.
You Don't Need Good Credit
One of the major issues with credit cards, when it comes to approval, is that you need to have a good credit score in order to be accepted. Obviously, that excludes a lot of people who are not lucky enough to have an excellent rating. It can take a long time to pull your credit up, so in the meantime, why don't you get a cash loan, instead? Cash loans are available for borrowers with bad credit, albeit with a higher interest rate.
The Interest Rate Is Similar To The Credit Card One
It's true that the interest rate is high on cash loans, but you know what? So is the interest rate for credit cards. And if you are not able to successfully repay the balance for the month, you get stuck with debt that racks up interest like there's no tomorrow. That can be the start of a vicious circle.
You Can Get One Anywhere
Another thing to take into consideration is the fact that a credit card limits you quite a bit in terms of providers. You need to go to a credit card provider in order to get one, and as you were able to see, you also need to have a certain credit score. Cash loans, on the other hand, are available everywhere. You can get them online or on the high-street, and they only require you to fill out a quick application form in order to get them.
You Don't Have A Paper Trail Of Your Expenses
Some people are concerned about having their expense history readily available. If you have a personal matter that requires financing, a credit card statement would display it for all to see. Cash, however, is extremely discreet. You receive it and then what you do with it is your decision and your business, alone. No one can track your spending - neither the provider or a loved one. Your privacy is guaranteed.
You Can Get It Instantly
There is a reason why people like cash - it's fast. With a traditional loan, or a credit card, in this case, approval can take forever. The application process is long and drawn-out, you have to jump through hoops, wait forever, and then you finally are able to access the funds. A quick same day loan enables you to get your money as soon as you receive approval, which doesn't take long at all to come!
In conclusion, while credit cards can be extremely convenient and a good financing solution for certain needs, cash loans can provide a better deal or be a better option for a lot of borrowers. Especially if you have bad credit, loans in cash can be the ideal solution.