If you are like most people, you make dozens of financial decisions each week. Everything, from where to buy groceries to whether you need a new pair of shoes, is a decision. Similarly, you need to make a decision on choosing the right line of credit when you need some funds. Usually at the end of the month, there is some financial crisis faced by every individual. To meet some needs and emergencies coming up at the time of crisis, you may look for borrowing. The two most feasible borrowing products are personal loans and credit cards. They are feasible because they are easily available and very flexible to meet any sort of need. However, even after having similarities, they are very different when it comes to cost, usage, and availability. If you want to choose the right product, you need to compare a personal loan apply online products and a credit card.

What is a credit card?

A credit card is a revolving line of credit. It comes with a revolving and pre-approved credit limit that can be used for any kind of need. Once you pay your bills, the available limit comes back to you for further usage. You pay and you get back the amount that you have paid. A credit card is one of the most expensive forms of loan. It is a good option for small and petty expenses. If you are capable of making repayment instantly, only then use a credit card.

What is a personal loan?

A personal loan is an instalment loan with one time disbursement. There is no need for any collateral or security as it is an unsecured loan. An instant personal loan is flexible and an ideal one for small and big expenses. Here, you need to pay the EMI with interest every month until the tenure or the loan amount ends.

The difference between personal loans and credit cards

Affordable: A personal loan is not expensive. It is affordable. If you look for the right deal in the market, you will get a good rate of interest. By meeting the eligibility criteria, it will be very easy for you to manage an affordable EMI monthly. It is a good option as you get a lot of time to repay it. On the other hand, a credit card is the most expensive form of loan. It is good for people that are able to make the entire payment within the same month. The rate of interest and the added charges are very high. Since it is a revolving credit facility, the burden becomes very high as people misuse it.

A personal loan is flexible and meant for both small and big-ticket expenses. The loan amount depends upon your eligibility. If you are eligible, you can get a good amount to sponsor big expenses like weddings, home renovations, or travel. On the other hand, a credit card is meant for only small expenses. You can not use a credit card for big expenses.

Facility of repaying: A personal loan is an installment loan where you need to pay the EMI till the loan is closed. For the credit card, you can keep getting back the available credit limit after you pay your bills. You can get back the credit limit to use further for purchases.

Read More: Do You Believe Any of These 4 Personal Loan Myths?

Wrapping up

For a smooth personal loan apply process, visit the website of Clix Capital. You will find the best experience of having an instant personal loan.