In modern society, credit cards have become an indispensable part of people's lives. Credit cards can not only be used for consumption, but also for loans. So, how do you get a credit card loan?

How do you get a credit card loan?

There are three ways to get a credit card loan: cash advance, installment payment and credit card overdraft. Let’s introduce them separately below:

1. Cash advance

Cash advance can be understood as withdrawing a certain amount of cash from an ATM machine. This process is similar to withdrawing cash with a credit card. However, cash advances require an additional fee, and the fee increases as the amount of cash withdrawn increases. In addition, the interest rate on a cash advance is higher than on a cash withdrawal, so if you need a large amount of cash, a cash advance is not a good deal.

2. Installment payment

Instalment payment is actually a method of repaying the consumption amount in installments after using a credit card. The installment period is generally within 12 months, and the interest rate is low. However, it should be noted that if you choose to pay in installments, it will affect the available limit of your credit card. It is recommended to confirm whether the available limit of your credit card is sufficient for consumption before consumption, so as not to affect daily consumption.

3. Credit card overdraft

Credit card overdraft refers to a way of spending more than the balance on the card within the maximum limit of the credit card. Overdraft interest rates are higher, but they are also more convenient. As long as the available limit on your credit card is sufficient, you can make overdraft purchases.

Advantages, disadvantages and applicable scenarios of credit card loans

1. Advantages

Compared with other loan methods, credit card loans have the following advantages:

< p>(1) Convenient and fast. Credit card loans do not require any guarantee, are relatively simple to apply for, have a short review time, and can solve the problem of urgent need for money in a short period of time.

(2) Low interest. Compared with other loan methods, credit card loan interest rates are relatively low, with interest rates generally around 12%, and most credit cards have an interest-free period, so you can avoid interest problems.

(3) Flexible repayment. For credit card loans, you can choose the repayment method according to your actual situation, and you can choose one-time repayment or installment repayment. Moreover, the repayment amount is not fixed and can be decided according to your actual situation.

2. Disadvantages

Credit card loans also have some shortcomings:

(1) High interest rates. Although the interest rate of credit card loans is lower than other loan methods, it is still relatively high. If the payment is overdue, the interest rate will increase.

(2)The quota is limited. The credit card loan limit is linked to the personal credit limit, and repayment ability is also an important factor, so compared with other loan methods, the loan limit will be limited.

(3) Affect credit rating. If a credit card loan is repaid overdue, it will have an adverse impact on your credit rating and affect your personal credit record.

3. Applicable scenarios

Credit card loans are suitable for the following scenarios:

(1) Emergency situations. If an emergency arises that requires a large amount of money, a credit card loan can solve the problem in a timely manner.

(2) Personal consumption. Credit card loans can also be used for personal consumption, such as buying a car or a house, etc.

(3) Small and medium-sized enterprise loans. Credit card loans can also be used for small and medium-sized enterprise loans. Compared with other loan methods, credit card loans are linked to personal credit ratings and are more flexible in approval.