Is it better to apply for a credit card or a loan?

Nowadays, many friends have a lot of consumption pressure, so they will choose to apply for a credit card or go to a bank for a loan. However, some friends will question, what about applying for a credit card? Which is better, or a loan?

1. For payment methods for advance consumption, if the amount is relatively small, try to choose credit card payment. If it is a large amount of consumption, if there is no large credit card, choose a personal consumption loan. No matter which method of payment is used, what consumers have to do is to make repayments on time based on their actual situation and not to cause black spots on their credit records.

2. Credit card payment and personal small consumption loan are the two most common ways of advance consumption that consumers choose when consuming. To put it most directly, which payment method allows consumers to pay the most money? The less, which payment method consumers should choose. Credit cards can be said to be a "variant product", a non-cash transaction payment method that banks promise to consumers.

3. In terms of interest, credit cards are more popular than personal consumption loans because they have a longer interest-free period; in terms of amount, in addition to credit cards with large amounts, personal consumption loans are more Higher limit than credit card. Credit cards and personal consumption loans each have their own advantages. If consumers need a relatively small amount of funds, they can choose to use credit cards for consumption and repay before the end of the interest-free period without paying any interest.

4. In terms of repayment period, credit card installment payment allows consumers to freely choose installments within the options provided by the bank. The longer the installment time, the greater the total repayment amount. Generally, it can You can choose to divide it into 6 installments, 12 installments, 24 installments, etc.; while the loan period of small consumer loans may be less selective, and the interest paid may also be higher. The maximum period of small consumer loans is generally no more than 3 years.

To sum up, we know that the two are incomparable. Each has its own use. It depends on your own situation. You cannot generalize and say that it is better to apply for a credit card or to apply for a loan. You can use it for daily consumption, you can apply for a credit card, you can use it to decorate your house, you can apply for a loan.

Which is more cost-effective, credit loan or credit card loan?

Overall, credit loan is more cost-effective than credit card loan.

Credit card loans are small-amount loans, generally used for small purchases, and loans of less than 100,000 are rarely available. The credit loan limit is determined based on the borrower's qualifications. The better the qualifications, the higher the limit. Generally, it is not difficult to borrow tens of thousands to hundreds of thousands, and some can even loan more than one million.

Credit loans have lower interest rates than credit cards. Friends who have used credit cards should know that if you repay in installments, the interest rates are not generally high. But credit loans are very low, with an annual interest rate of around 5.6.

In addition, there are differences in the repayment methods. Credit card loans are repaid in equal amounts of principal and interest. For credit loans, you can choose the repayment method of interest first and then principal or equal amounts of principal and interest. After interest, the interest is paid every month and the principal is repaid in the last period. This repayment method is relatively easy in the early stage and has less monthly payment pressure, but the pressure will be relatively high in the later stage of repayment.

Which is better, credit card loan or bank loan?

Whether a credit card is more cost-effective or a bank loan is more cost-effective, we will discuss it in different situations. If it is short-term, it is more cost-effective to use a credit card;

If it is a long-term funding need, it is relatively cost-effective to use a bank loan. If the credit card limit does not exceed the fixed limit of 50, it is more cost-effective to use a credit card; for large purchases with a credit card limit of more than 50, it is more cost-effective to use a bank loan.

Main features of credit card:

1. Credit card is one of the fastest growing financial services today. It is an electronic currency that can replace traditional cash circulation within a certain range. ;

2. Credit cards have both payment and credit functions. Cardholders can use it to purchase goods or enjoy services, and can also obtain certain loans from card issuers by using credit cards;

3. Credit cards are high-tech products that integrate financial services and computer technology.

4. Credit cards can reduce the use of cash;

5. Credit cards can provide settlement services, facilitate shopping and consumption, and enhance a sense of security;

6. Credit cards It can simplify the collection procedures and save social labor;

7. Credit cards can promote product sales and meet social needs.

Main types

According to different card issuers, they can be divided into bank cards and non-bank cards

Bank cards. This is a credit card issued by a bank. Cardholders can shop at the card-issuing bank's special merchants, and can also withdraw cash at any time at any branch of the card-issuing bank or at places with ATMs.

Non-bank card. Such cards can be specifically divided into retail credit cards and travel and entertainment cards. Retail credit cards are credit cards issued by commercial institutions, such as department stores, petroleum companies, etc., which are specially used for shopping in designated stores or refueling at gasoline stations, etc., and are settled regularly. Travel and entertainment cards are credit cards issued by the service industry, such as airlines, travel companies, etc., and are used for purchasing tickets, meals, accommodation, entertainment, etc.

According to the different objects of card issuance, it can be divided into corporate cards and personal cards

Corporate cards. Company cards are issued to various industrial and commercial enterprises, scientific research and education institutions, national party and government agencies, military units, groups and other legal organizations.

Personal card. Personal cards are issued to urban and rural residents, including workers, cadres, teachers, scientific and technological workers, self-employed households and other adult urban and rural residents with stable sources of income. A personal card is applied for in the name of an individual and he/she bears all responsibilities for using the card.

According to the credit status, status and other credit conditions of the cardholder, it can be divided into ordinary cards and gold cards

Ordinary cards. Ordinary cards are issued to cardholders with average financial strength, credibility and status, and their various requirements are not high.

Gold Card. A gold card is a high-end credit card that pays high membership fees and enjoys special benefits. Cards are issued to those with higher credit standing, stronger repayment ability and credit, or those with a certain social status. The authorization limit of the gold card starts from a higher level, and the additional service items and scope are much wider, so the requirements for relevant service fees and security deposits are also relatively high.

According to different repayment methods, credit cards can be divided into credit cards and debit cards

Credit cards. It is a card-issuing bank that provides bank credit. When making a payment, it is first used as an overdraft, and then repaid or paid in installments. Most of these cards are used internationally. That is to say, the way that cardholders are allowed to pay off their credit card accounts without deposits is "spend first, deposit later". Most of the cards currently used internationally are of this type.

Credit and debit cards. It is a credit card issued by a bank that allows you to deposit money first and spend later. When applying for a credit card, cardholders need to deposit a certain amount of money in the card-issuing bank for backup. Cardholders need to use the deposit balance as a basis when using the card. Overdrafts are generally not allowed.