Credit Cards and Installment Loans
An installment loan is a funding that can be availed from a direct financing company like CashAmericaToday online, and a successful application process (takes a couple of minutes to complete) gives you cash access up to $1,000 in your account. Once you have the cash, you can spend it any way you want and repay it over 3 months through multiple and small scheduled payments. This is direct access to cash, and no gateway.
A credit card on the other hand –which also are issued by banks and credit companies- allows the user to buy certain goods and services by borrowing the amount directly from the company. At the end of the agreed term- which is usually monthly, the user pays the borrowed amount and applicable charges.
Are Installment Loans Better Than Credit Cards?
To be fair, they should not be compared. Because they are designed for two different consumer groups. A credit card is issued to people with medium and high incomes- and often by the banks or credit companies where users’ savings or checking account is registered with. They charge very high APR (annual percentage rate), and set a limit of expenditure one can make. Apart from that, one can use the card where a card can be used. It cannot be used where only cash option comes.
On the other hand, if you are someone with a low income, it is fair for you to ask “are installment loans better than credit cards?”. And the answer is yes! Because here you get direct access to hard cash at low interest rates, and get a lot of time to repay the money. In most cases anyway you won’t get a credit card if your income is low. Apart from that, a credit card use can harm your credit to a great extent if you make big purchases and cannot pay back because you have to pay off around the salary day. Therefore, if you are facing a financial difficulty, an installment loan is your option. Apply now for free!