How credit card loans work?
When you apply for a credit card. You are applying for a loan card in sense. Because after the card is approved by the bank. They will set a credit limit on your card. That you can use it whenever you in need of quick money. In simple word, the bank is lending you limited money. But, also for a limited period of time.
Credit card due date crossed?Whenever the time limit cross and you are unable to pay. The debt will increase day by day with higher rates. It might feel easy solution when borrowing the money. But, when the due date is close it becomes a big headache.
The drawbacks of using credit cards?
- High interest rates.
- Time limit very short.
- Repayment takes extra fees.
- Limited amount of lending money.
- Penalty after the due date.
How credit card debt consolidation loan works?It works in a very simple way. Repayment period is usually longer. You get an option for Monthly easy installment. Autopay makes it easier to pay with no tension. You can lend up to $100,000, must higher than any credit card loan. A fixed low interest APR with no extra fees.
An unsecured personal loan is more reliable. You can pay off and delete all secured loans from your list. A simple single loan to carry on. Pay time to time with the monthly payment option. Low APR rates and loan amount upon your requirement. No extra fees and hassle.