Although practical in our daily life or during a stay, credit cards can however prove to be very expensive as soon as they are used to make a purchase on credit…
When you make a purchase through your credit card, you may be offered a refund facility by the merchant with whom you do business.
This merchant is himself in partnership with a company specializing in bank loans. This attractive type of financing generates high interest (often around 12.5% per year). In order to avoid paying exorbitant interest, you will have to repay your balance as soon as possible, which is generally not easy when you have just taken out a loan.
Good Lender be carried out a study by analyzing the rates applied on the various credit cards, as well as the rates in force concerning personal loans. The differences in rates observed revealed that it is much more advantageous to opt for a personal loan, because of the lower interest rates offered than those noted when buying on credit with your bank card. It is therefore advisable to take out a personal loan over 12 months, rather than paying off the balance on your credit card over a period of 6 months.
A purchase on credit via a bank card should only be considered if one is able to repay the loan contracted in less than 3 months.
If you can not repay the amount borrowed within 3 months of the credit contraction via your bank card, it is therefore more prudent and judicious to postpone your purchase.
If you wish to obtain the sum of $ 4,000 without paying excessively high interest, calculates the sum of interest when using your credit cards, as well as the interest recorded for a personal loan.