Are consumer loans the same as credit cards?
First of all, consumer loans are different from credit cards. Consumer loans and credit cards have the following differences:
The loan amount is different. Although credit card is also a kind of consumer loan, its credit line is generally between thousands and tens of thousands of yuan, while the traditional consumer loan line is as high as millions. Therefore, if you have a large demand for capital consumption, you'd better choose traditional consumer loans.
The loan term is different. After credit card consumption, borrowers can apply for installment, but the installment period is generally only three years at the longest, while the traditional consumer loan period can reach five years at the longest.
Different scope of application. When applying for a consumer loan, the borrower must provide a true and reliable proof of use, that is to say, the loan needs to be earmarked, and the credit card has a wide range of applications and does not need to provide any proof of use.
The cost is different. Credit cards have a certain interest-free period, up to 56 days, which means that as long as you repay in full and on time within the specified time, the issuing bank will not charge interest; Traditional consumer loans have no interest-free period, so as long as the borrower successfully obtains the loan, it is necessary to pay interest.
The application procedure is different. The application procedures for consumer loans are complicated, the bank's approval is strict, and the loan is slow; However, it is relatively easy to apply for a credit card. As long as you can provide stable proof of work income and identity, it is easy to get approval and the approval time is short.
Which to choose, credit card or consumer loan?
Choosing a credit card or a consumer loan can also be based on your own needs. If the personal credit limit is generally small, it will be better to apply for a credit card, and you can continue to use it after paying off the credit card limit. You don't need to apply again, but it will take a long time to get rid of the card. If you need a lot of money urgently, applying for a consumer loan will be more in line with the demand, but if you need money later, you need to apply again.