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
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
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.