On many occasions, a large number of families in United States need a microloan or use a credit card to be able to solve an emergency financial situation that they cannot face at the moment. And that is why after a while the interest rate they must pay is usually very high and in the end the payment they made is usually up to double. Therefore, it is very important to know which of the two services to choose: the microloan or the use of a credit card , which are totally different from online long-term loans.
For example, there are many people who do not require a large amount of money to be able to face an investment, but on many occasions also to buy a television, a mobile or simply finance a vacation that they have wanted so much. So today we will have the answer to the question of which of the two options to choose for this type of emergency, a microloan or a credit card .
Use the credit card?
When it comes to an emergency or the purchase of an item that is not a large amount of money, in many cases families or individuals use credit cards, since it is not necessary to obtain one of the long-term loans online . With the use of "plastic", people will be able to purchase the product even though there is no money in the checking account at the moment. Therefore, the bank must charge an interest on the amount that has been spent for it.
So using credit cards is convenient if what is going to be financed is a purchase that does not exceed the limit that is in it.
According to official figures in 2015 in the United States there were more than 44,819 million credit cards, which is equivalent to approximately one per inhabitant. If they are used for minor purchases or emergencies in which a large amount of money does not have to be covered, it is convenient to use them and not microcredits.
When to use microloans?
When it is not necessary to use long-term loans online, one of the best options without a doubt is microloans. It is one of the best alternatives to be able to make purchases a little larger and not use a credit card , because this type of personal loan is very convenient for people who urgently require cash liquidity, because the great most can be obtained within 24 hours.
The big difference with credit cards is that they can be used in situations where you need a little more money than you have available on your card.
It is very important to mention that everything will depend on the period in which you plan to return the cash, since in the vast majority of microloans there is an option that can be 30 days, but there are interesting extensions that can give the option to clients to have a repayment term that goes up to 90 days. This is something that does not happen with credit cards, since on a regular basis they only offer up to 40 days with the payment without interest, but after spending it, you can charge interest every month.
So in reality, both credit cards and microloans are ideal options to finance projects, emergencies or the purchase of appliances that do not involve a large amount of money to opt for a personal loan.