Hi, first of all, Surbhi has done a great job of explaining the difference between personal loan vs credit card EMI difference. Along with that, I also believe that personal loans are a better option between the two. However, the difference between both these is not just limited to that; let me provide you with a few more differences between the two of them.
Credit Card EMI Vs Personal Loan: Which is Better?
I have added the other differences between these two below.
Personal Loan | Credit Card EMI |
Personal Loans can provide huge amounts of funds that can be used for investments or emergencies. | They are very useful for managing short-term cash flow issues. |
They can boost your credit score. | Credit Card EMIs require very little paperwork and no additional documentation. |
I believe that both of these loans come with their own set of disadvantages as well. I have added a few of those in a table below.
Personal Loan | Credit Card EMI |
People with lower credit scores might have to pay higher interest rates. | If the balance isn’t paid off quickly, these can become more expensive. |
You might have to pay pre-closure fees if you try to pay off the loan before its term. | These can lead to impulsive spending, leading to accumulated of debt. |
And that’s about it. I hope you find this helpful.
Get Upto 10 Lakhs in Your Account Instantly through NoBroker Instacash
Read More
Your Feedback Matters! How was this Answer?
Shifting, House?
✔
Lowest Price Quote✔
Safe Relocation✔
Professional Labour✔
Timely Pickup & Delivery
Intercity Shifting-Upto 25% Off
Check Prices
Intracity Shifting-Upto 25% Off
Check Prices
City Tempo-Upto 50% Off
Book Now
I was quite in a dilemma about which is better credit card EMI vs personal loan hence, I consulted with a banking friend to get an answer. She explained to me their differences first so that I could decide which would suit my purpose more. I learned that credit card EMI generally comes with higher interest rates and shorter repayment periods. On the other hand, personal loans offer lower interest rates and a longer repayment period.
Which Is Better Personal Loan vs Credit Card EMI and Why?
I found a personal loan EMI to be a better option than a credit card EMI, mainly because I needed a good sum of money and would not have been able to pay it in a short time. Personal loans are great for larger amounts and credit card EMI are best for small and short-time purchases. Apart from this major difference, here are more differences between these two:
Personal Loan EMI |
Credit Card EMI |
Personal loan offers longer repayment tenure |
The credit card offers shorter repayment tenure |
They are best for larger amounts |
They are ideal for smaller and short-term purchases |
Personal loan approval calls for documentation and approval processes |
Credit card has no such hassle |
Personal loan offers fixed EMIs and terms |
Credit card offers flexible EMIs but is limited to card limit |
So you can decide which of these two will be the best to suit your needs and opt for that option.
Get Your Personal Loan Approved for a Loan Amount up to Rs 10 Lakh with NB InstaCashRead More:
What is the EMI for 2 Lakh Personal Loan?
Your Feedback Matters! How was this Answer?
Shifting, House?
✔
Lowest Price Quote✔
Safe Relocation✔
Professional Labour✔
Timely Pickup & Delivery
Intercity Shifting-Upto 25% Off
Check Prices
Intracity Shifting-Upto 25% Off
Check Prices
City Tempo-Upto 50% Off
Book Now
Authors Of The Question
Which is Better Personal Loan vs Credit Card EMI?
Rameshwar
106 Views
2 Answers
3 months
2024-09-30T16:21:27+00:00 2024-09-30T16:21:27+00:00Comment
Share