If you need money to fund a large purchase or to pay for something else that you don't have the money for, you could be looking into your borrowing options. There are a few options that you can potentially use, such as using a credit card or taking out a personal loan. If you're thinking about using a credit card for your purchase, you may want to consider a personal loan instead for the following reasons.
You Aren't Restricted to One Store
Although this certainly is not the case for all credit cards, some credit cards are store-specific. This means that you can only use them at one particular store, such as a clothing store or big box store. Although these cards can be useful for things like buying clothes, they won't be very helpful if you need a lump sum of money for some other purpose. If you take out a personal loan, on the other hand, you can use the money for just about anything.
You'll Have the Money in Cash
Even if you have a credit card that is not store-specific, you still will not have the money in cash. In some cases, though, you might need cash money, such as if you're dealing with a home improvement contractor or mechanic who doesn't accept credit or debit cards. Although you can sometimes get a cash advance from your credit card, there are often heavy fees that go along with doing so. With a personal loan, however, you should either receive cash or receive a deposit in your bank account, which then allows you to take the money out in cash.
You May Be Able to Borrow More Money
Credit card limits can often be low, and depending on what you are going to be using the money for, you might need more than what you can get approved for on a credit card. You may find that you will be able to borrow more money with a personal loan.
Interest Rates May Be Lower
Credit card interest rates can often be quite high. Depending on your credit score, you might be able to take out a personal loan without paying as much in interest.
Monthly Payments Should Be Predictable
When you take out a personal loan, you will typically be told just how much your payments will be each month. You should be told how long you will need to make these payments, too. Then, you don't have to worry about unexpected, overly expensive monthly payments that don't fit your budget.
Contact a company like Time Finance Inc. to learn more.