Credit cards give us the freedom to spend even when we do not have any funds with us. So whether it is buying a TV, a Fridge or a new music system, a credit card can help you get it home sooner. Yet, a credit card is not an extension of your income. You should not mistake it to be so. Paying the monthly dues can sometimes become tedious. If you miss paying even a single bill for a month then, the outstanding keeps piling up.
Credit cards have a higher rate of interest and if the bills start piling then you need to look out for other options to pay these bills. One option you can consider is to apply for an instant personal loan. A Personal loan can help you consolidate all your credit card dues and pay them once and for all.
Here are a few advantages of availing a personal loan.
- Low Rate of Interest
A personal loan has a comparatively lower rate of interest than a credit card. Also if you have a good credit score then there are chances that you might get a much better deal on a personal loan with a low-interest rate.
- Easier Repayments
If there are outstanding payments to be done for more than a single credit card, then you need to keep a proper track of the due dates, which can become a task. Whereas taking a personal loan can help you consolidate all these payments and pay in the form of EMIs. Once you know the total outstanding amount you can use the personal loan EMI calculator to calculate the monthly EMIs and get an estimate.
- Option to Choose a Flexible Tenure
There is no compulsion to repay the loan at one go, unlike the credit card outstanding payments. Hence when you avail a personal loan you can choose a tenure as per your repayment capacity and repay accordingly.
Parameters to consider before you apply for a personal loan in India.
As mentioned above, when you apply for an online personal loan to pay credit card dues, you have the advantage of paying a lower rate of interest and also choose a flexible tenure.
Things one should keep in mind before you apply for a personal loan:
- Credit Score
You need to have an impressive credit score if you want a lower rate of interest and also fast approval. As a personal loan is an unsecured type of loan, lenders make sure that they give to loan to a borrower who has the capacity to repay which is reflected by a good credit score.
- Interest Rate Offered
The interest on personal loan is why you consider opting for a personal loan. A credit card interest rate can reach anywhere till 40% while a personal loan interest rates start from 11.99%.
If you feel that in the future you will have a certain inflow of cash then, choose a lender which charge less or zero prepayment fees.
Choose an instant personal loan wisely and you will see that it definitely helps you solve your credit card woes.