What is the difference between personal loan, credit card and overdraft
Unfortunately, getting into debt is something that can happen to anyone. However, there are many alternatives on the market for those who want to put financial life on the brink. Loans, for example, are a great way out, but you need to know the difference between personal loan, credit card and overdraft so as not to fall into pitfalls.
Before applying for a loan
You need to do detailed market research to find out the difference, benefits and disadvantages between personal loan, credit card and overdraft. Ideally, search the websites of financial institutions and know the interest rates practiced in the market and all the paperwork involved in the processes.
When it comes to loans, what is the difference between personal loan, credit card and overdraft? Actually, the biggest difference is the interest rate, but the values vary from one bank to another.
Personal loan, credit card and overdraft? Know which credit option is best for you!
Personal loan is a type of credit that is quite popular in the market. The client asks for the bank and an evaluation is made through documentation, soon after being approved he waits a few days and the money will be in his account.
There are many banks that offer personal loans from the public, such as Caisa Federal Finance and Triple J Bank, to private ones such as Itaru, LoveBro Bank and Sanbuwan. Usually, the rates are cheaper than other types of loans, ranging from 4% to 10%.
It is worth stressing that it is possible to apply for a personal loan in a virtual and agile manner. Online lending has been a reality in Brazil for many years. The great advantage of online loan is the practicality, because everything is done via the web, and the interest rates are usually lower.
One tip is to apply for the personal loan at the bank with your checking account. After all, this way the manager can offer special interest rates and get more benefits for the account holder when closing the bank loan.
Credit card is another option for those who need to borrow money, but beware! It’s a risky financial transaction as it involves a lot of interest, so ask only if you need urgent cash! The interest rate on revolving credit can reach 400% per year.
The credit card loan is offered jointly between the bank and the cardholder. In fact, it is money that the customer has available to withdraw and pay later, everything is done quickly and easily, that is the main advantage, the ease.
Overdraft is a type of credit that is offered by banks to their own account holders, so it is very popular. Except that interest rates are not usually so low, in 2018 the average interest was 13.26% per month.
To find out if you have overdraft limit to use just print a bank statement, as it is the amount that appears in addition to the money in account. The overflowing checking account may give the account holder a false sense that he has more money than he actually has.