The credit card or a credit line are two very good options to have money when you do not have cash. There are a lot of offers in the market, and finding the best one for you may not be a simple task. If after reading the pros and cons that we will present in this article you want to hire a financial product of this type, but you do not know which one, use a loan comparator and make sure the right choice.

 

Pros and cons of credit cards

credit cards

Simply put, a credit card is a financial product that allows you to make purchases to pay them in installments. Know below the pros and cons of this product.

Pros of credit cards

  • You can pay your purchases at lower interest rates than in personal loans; Or you can pay the debt in a single installment without interest.
  • You have cash advances through ATMs or bank lockers.
  • You can make purchases online more conveniently.
  • Some banks offer credit cards with a refund of a percentage of VAT paid on each purchase.

Cons of credit cards

  • If your credit card is lost or stolen, it can be cumbersome to request another one.
  • There is a fee collection for plastic handling.
  • In the event that your credit history with the card presents default, that may affect the obtaining of future products.

 

Pros and cons of the credit line

Pros and cons of the credit line

A line of credit is a small loan that people or companies can access to cover certain expenses. The main characteristic of this type of financing is that they have a limit established by the entity that grants it from which the client can obtain the amount he needs when he wants, and then pay the fees and interest within a certain period. Learn more about the pros and cons of this product.

Pros of the credit lines

  • It is a flexible product. The customer can access the amount granted whenever he wants (without exceeding it).
  • Access to money is immediate.
  • It is granted by online companies and banks, which gives you greater comfort.

Cons of the credit lines

  • There are lines of credit that charge non-availability expenses. So if you do not use the total amount granted, you must still pay for the amount you did not use.
  • In many cases they charge opening commissions.
  • They charge different interest rates for the amount arranged and exceeded.

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