Fast online credits vs credit cards
Hiring a credit card to face unforeseen debts or requesting a mini-credit? This is the trade-off many consumers often face in search of financial support.
The answer is to know the advantages and disadvantages of each of these alternatives.
Credit cards: always with us
They help us make ends meet and with them we can not only face daily expenses but financial unforeseen events.
Credit cards put at our disposal a maximum amount of money that we can spend during a certain period of time.
How do they work? The expenses accumulate and at the end of the period, normally one month, they are jointly and automatically charged to our associated bank account. That is, we can spend the total amount of money provided, but that same amount must be available in the associated account after a month, otherwise, we will be charged interest for delay.
Let's say that, in this way, the credit card allows us to advance payments and expenses that we must be able to assume in a matter of weeks .
As we can always carry the credit card in our wallet, it gives us security and comfort, by being able to make the necessary payment at any time and in the world. In addition, most cards have insurance that supports us against theft, travel accidents ..., so they are great allies when we leave the country .
The cons: Obtaining it forces us to contract a service and, as a consequence, to become clients of a financial institution, which translates into direct debit of a payroll, pension or social security, among other requirements, in addition to carrying out certain bureaucratic procedure that requires paperwork and travel.
In most cases we must pay associated maintenance commissions or make a minimum of expenses per month , and they will not grant us the credit card unless we pass a thorough solvency analysis in which, among other things, we will have to prove recurring income.
Online microcredits : simple and very fast
Easily accessible, through a mobile, for example; quick to request, in a matter of minutes, and efficient, we have the necessary money in less than 24 hours. These are the great advantages of a product whose contracting in our country has exploded in recent years due to its simplicity and transparency .
The application for a mini-loan does not oblige us to become clients or to give explanations about our domestic economy. In fact, the majority of financial companies that operate online in this field do not even request a proof of monthly income.
The cons: When we apply for a microcredit, we are asking for a specific amount of money to be returned before a fixed date , exceeding the latter can lead to high costs, so it is convenient to think well about the period of time that we will need to meet the amount demanded plus the interest generated by the credit in question. The best: do it as soon as possible, the shorter the repayment time, the lower the interest accrued.
So, what is the best option? Well, the one that meets the needs raised. To face specific expenses, our advice is that you trust an online mini-credit provided by a solvent financial institution . If, on the other hand, you are going to need continued financial support over time, perhaps your option is to hire a credit card.