A credit card or a loan (part I)?

The variety of different credit tools can arise a question, like what should we choose – a credit card or a loan, if we need some additional money? In this article we’d like to learn more both of the variants, in order to define their pros and cons.

So, let’s start with credit cards’ advantages. Many banks offer their clients a 0% rates, which are active for the first time you use your card. Of course, it’s a great opportunity to use your money from the card for your needs, return them there again and pay no interests at all. Credit cards also provide some protection to you as to a customer – banks can make some refunds if your goods are not properly delivered or anything else. Money from credit cards can be easily transferred to any of your account, what means they will be available for any of your needs with minimal fees.

However, credit cards have low credit limits, what means they, probably, won’t provide you with enough amount of money. Plus you should be really careful with cards’ interest charges. They are really high, and if you forget about any amount of money, owed to the bank, you can get some really big financial problems.

In the majority of cases, credit cards are used mostly for purchases.They can be perfectly combined with bonuses and special offers, active in your shop. It can bring you some more benefits as well. The bank sets up high fees for cash withdrawals, so it’s better for you to avoid them.