When many friends want to apply for a loan, they are confused whether to apply for a credit card loan or a credit loan. How to choose? If they don’t understand clearly, they really don’t know which one is better. Some people are even more stupid and can't tell the difference, thinking that the two are actually the same. In fact, this is not the case. There is a big difference between the two. Let’s analyze it for everyone!

1. Different loan limits. The credit card loan limit generally depends on how high the credit card limit you hold is. In most cases, the credit card loan limit will not be much higher than the original limit. The credit loan limit will not be subject to too many restrictions. Generally, the limit is around 10 times the personal income. If the monthly income exceeds 2,000, it can easily exceed the credit card loan.

2. Different loan periods. The installments of credit card loans are mainly short-term, and the longest will not exceed 24 periods, which is 2 years. However, credit loans give more choices, and the longest loan period can be as long as 5 years.

3. Loan costs are different. The installment fee for credit card loans is about 7-22, while the annual interest rate for credit loans is between 7 and 22. At first glance, you may think that credit card loans have an absolute advantage, but this is not the case. Credit card loans use an interest calculation method of equal principal and interest, that is, no matter how many installments you have left in the end, the handling fee you have to pay is calculated based on the principal. As the amount of money you owe on a credit loan gets smaller and smaller, the interest you have to pay back will also get smaller and smaller. In the end, who gets the best deal depends on everyone making a calculation.

4. Different rules for early repayment. Although credit card loans also provide the option of early repayment, the handling fee is not waived for you. Therefore, early repayment does not make any sense. Credit loans are different in this rule. If you repay early, you can waive the remaining interest and only need to pay a part of the penalty. If the penalty is less than the remaining interest, you can still save money by repaying early. Here we introduce to you the four differences between credit card loans and credit loans. After reading this, which one do you think is better? In fact, as long as you choose the one that suits you, it is the best, so please weigh it in your mind!