Credit cards and fast loans both are well-known methods of borrowing money. The prime difference between them is that the credit card is popular as plastic money from which you can buy anything or even pay your bills. On the other hand, fast loans are taken from the bank, depending on your requirements and convenience. The lenders who are providing both charges a specific amount of interest rate and can easily repay via EMI. Fast loans and credit cards share similar attributes but are way far from each other. So, let’s start to have a look at their difference by exploring the information about both.
We all recognize the fast loan as unsecured ones, which means you can get the money without providing any security. Talking about the repayments, they can be done with monthly instalments up to a specific period of time. In general, the time varies from two to five years.
Also popular as plastic money, you can take advantage when you apply for it. They are considered to be expensive than fast loans because the interest rates are very high. Also, the card comes with the limit under which you can buy your things. Another disadvantage of using a credit card is that if you have a high outstanding bill, it will directly affect your CIBIL.
Purpose of having them
There are numerous reasons for which you can apply for fast loans like medical emergencies, higher education, marriage, and many more. On the other hand, the credit cards are mainly required for making both small and big purchases under the limit.
How can you borrow?
A fast loan Singapore is borrowed when you apply online on the lenders portal and providing the proper documentation. The same process applies while applying for the credit card.
The repayments are generally made via EMIs up to specific tenure when we talk about the fast loans. For credit cards, the users have to pay the bill on a monthly basis. But, it comes with a flexibility that you can first pay the minimum balance and then pay rest later as per your convenience.