Credit cards are essentially a credit product. Compared with traditional consumer loans, in addition to enjoying a longer interest-free period, there are differences in the scope of use, application methods, and costs. Xiamen Datianxia tells you about credit card loans PK consumer loans? There are big differences in these four points

1. There are differences in the scope of use

Consumption loans are generally fixed and earmarked for the cardholder. For example, house purchase loans can only be used to purchase houses, cars, etc. Loans can only be used to buy cars, renovation loans can only be used for renovations, consumer loans can only be used for specific types of consumption, and so on.

Credit cards have a wider range of uses and are relatively more flexible. After applying for a credit card, you can pay by credit card at all merchants that accept credit cards.

2. Is there an interest-free period?

There is no interest-free period for consumer loans. Applicants need to repay on time each period from the effective date of the loan. Loan costs cannot be avoided.

Credit card loans enjoy an interest-free period of up to 50 days to 56 days. Cardholders are free of charge for overdraft consumption during the interest-free period, as long as they are repaid in full before the due payment date. There is no need to bear capital costs.

3. Is the application convenient and fast?

Consumer loan applications are troublesome, the process is cumbersome, the approval is strict and the approval time is usually long. In many cases, applying for consumer loans requires the applicant to provide More supporting documents, and even mortgages, guarantees, etc.

Applying for a credit card loan is relatively easy. Customers can apply for credit cards through bank offline outlets, bank official websites and other websites, as well as through WeChat, mobile apps and other channels. During the application process, you only need to provide personal information and application materials such as proof of employment and income. Credit card approval times are relatively short and application is more convenient.

4. Differences in repayment methods

Consumer loans are repaid on a fixed schedule.

Credit cards can be repaid in full, in installments or according to the minimum repayment amount, providing cardholders with more convenience.