Many novices between online loans and credit cards may not be able to tell the difference between them. They feel that they are both borrowing structures. Online loans are easier and faster to borrow, so many people apply online in confusion because they are short of money. loan. Now let me comprehensively talk about the differences between credit cards and online loans that I have seen on the Internet:

1. Application conditions

Credit cards: require higher personal qualifications and must Only apply to open an account if you meet relevant conditions, including specific and relevant personal materials, stable job and source of income. These two aspects basically determine the credit card limit when the application is received.

Online loans: Many third-party online loan platforms only require you to provide basic personal information and receive a review call smoothly before you can lend. Some even do not conduct phone verification, but the amount is not too high.

2. Interest and Charges

Credit cards: usually have an interest-free period of 18-50 days, leaving enough interest-free time in order to alleviate the applicant's financial pressure. In addition, an installment handling fee of usually 0.72-0.9 will be charged on a monthly basis. If the repayment is not made on time, an interest of 0.5% and a late payment fee of 5% will be charged.

Online loans: Generally, when applying for online loans, a certain percentage of the loan amount will be charged as a handling fee, but this part will be deducted from the repayment amount; apart from the handling fee, the interest charged is generally 10 and below is considered low, 10 to 15 is mid-range and reasonable, and 15 to 20 is on the high side. If there is no urgent need for funds, it is recommended to consider your own repayment ability before making a decision.

3. Loan speed

Credit card: After successful application, you can generally use the funds by directly requesting cash withdrawal (immediate credit) on the corresponding bank's website or APP or paying with a credit card. Friends who do not have a credit card need to go to the bank to apply for a credit card account opening. This cycle takes about 15 days, and it can be obtained as quickly as 7 days.

Online loans: Most online loans on the market now are for small loans, so approval is very fast. Users only need to register on the platform and then fill in the relevant information and loan amount. The other party will call to verify the information. Generally, as long as there are no problems with the materials, the loan will be released soon.

In general, credit cards are products launched to allow us to consume in advance, while online loans are designed to relieve our urgent need for money. The application is simple, the requirements are not high, and the payment is fast. , but at the same time, it also means high interest. Therefore, when applying for an online loan, you must carefully understand the interest algorithm of the online loan, evaluate whether you have the ability to repay, and then choose to borrow. Otherwise, if you make a mistake, you will regret it forever. It's time to regret it.