Nowadays, loans have become the norm in life. After all, young people who have just graduated are under a lot of pressure, and their monthly salary cannot take care of themselves, as well as car loans and house loans. Along with everyone's life, because they do not have enough ability, loans just meet everyone's advanced consumption. What is the difference between credit cards and online loans? Let's learn about it together.

1. Application review

Credit cards are issued by banks and are a simple credit service. Online loans, on the other hand, are mainly small-amount loans and are generally concentrated on Internet platforms. Because the nature of their main creditors is different, the review of the applicant's conditions is also very different.

Credit card application requirements are relatively high and require verification of detailed and true personal information, including household registration information, work income, fixed assets, etc. After meeting the basic conditions for applying for a card, the credit limit will be issued based on personal asset status. So some people’s quota is tens of thousands at the beginning, while some people’s quota is several thousand.

Online loan application is relatively easy compared to credit cards. Basically, you only need to provide your ID card and mobile phone number. Some platforms will have a follow-up phone review, and the review process is very smooth. , but the amount of online loans is generally not very high.

2. Interest

In terms of interest, the bank is relatively reasonable. If it is overdue, the interest is basically calculated at 5%, without considering compound interest and handling fees. Wait for the situation. If you apply for overdue installments through debt restructuring, although you cannot guarantee a 100% interest rate suspension, you can control it within 10%, or you can get a higher installment.

Regarding online loan interest, there are currently four situations: less than 10% is relatively low, less than 24% is reasonable, 24%-36% is on the high side, and more than 36% is considered high. It falls within the scope of usury.

3. Loan speed

In this aspect, credit cards are much less efficient than online loans. Because after applying for a credit card, you still need to wait for a period of time, such as going to the bank counter to apply, and the time to mail it on the road, etc.

As for online loans, if you can apply online, you may directly fill in the information completely and it will be approved immediately after review. Therefore, for people who need money urgently, online loan platforms are a better choice.

4. Consequences of Overdue Credit Cards

As credit cards become more popular, relevant regulations are becoming more and more complete. For example, because a credit card is a product of a bank, it will be directly linked to the cardholder's personal credit report. However, for online loans, it needs to be clearly stated that it is an institution, or a company that cooperates with the bank, etc., and it may not necessarily be subject to the levy. The letter needs to be specific and clear.

If the credit card is overdue, various collections and compound interest will increase the arrears, and there will even be a certain risk of criminal sentencing according to Article 196 of the Criminal Law. At present, credit cards are also the most direct credit products that are directly linked to criminal laws, so they should be used with caution.

Overdue online loans may also face collection problems, so you need to repay on time after borrowing to avoid overdue loans.

The above is the difference between credit cards and online loans introduced to you. Credit cards and online loans are very common forms of lending in society, but each has its own pros and cons. If you really need a loan in this area, you still need to consider it comprehensively, carefully weigh it, and then plan your repayment reasonably to solve the problems in your life as soon as possible.