Personal Loan Vs Line of Credit

At some point in time, everyone needs some extra sum of money. While the income of business and salary is fixed, expenses are never fixed. It keeps rising with time and some additional and emergency expenses keep coming up. When emergencies hit, you cannot delay in finding a solution. Especially when it is a medical emergency, you need to find a source of instant funds. That is when you can either go for a personal loan online application or a line of credit.

Both are flexible to use and offer an instant source of funds in your account. These credit sources are use by individuals to meet daily needs or emergency expenses. You must have good eligibility criteria if you need the right solution to financial stability. When you consider revolving credit, you need to handle your expenses in the right way. The expenses can be handle in a better way and you don’t need to use your income for meeting the expenses. Take a quick loan, and you can do much better with your expenses and emergencies.

Also, read “7 Benefits Of Having A Legitimate USA Importer Database“.

What is a personal loan?

An instant personal loan is a quick source of funds that is flexible and affordable. It can be a good amount of money or a small one, as per the need of the borrower. A Personal loan makes it easier to invest your expense on any kind. One can get hold of a personal loan with the right eligibility criteria. It is easy to get approval and also keep the rate of interest low as per the market standards.

The disbursement is a one-time amount and then the repayment is done through the EMI scheme monthly. This will not put any kind of burden on the borrower, as the flexibility to choose the tenure is there. One can get hold of a personal loan without the need for any collateral or security. It is very helpful in meeting the financial crisis immediately without any hassle or delay. For best assistance with a personal loan, go for Clix Capital. The personal loan application online process is quick and hassle-free.

What is a line of credit?

A line of credit works similarly to a credit card. In this, the instant personal loan provider offers an amount of pre-approved loan when you apply for it. However, the loan amount is not paid in a lump sum and one time. The amount is approve and there is a limit given for usage. According to the need of the borrower, this credit is utilized. Whatever the amount that one needs can be use from the credit limit, and the interest is paid only on that particular amount. There is no one disbursement and one can only use from the credit limit available to the borrower. It can be a good source of money for small and petty expenses, but the rate of interest is very high and it is too costly. Relying too much on a line of credit will not be a sensible approach to credit.

Use a personal loan for

  • Settling high-interest debt (credit cards/overdrafts)
  • Financing an expensive purchase
  • Paying for your wedding
  • Home repairs with a fixed expense
  • Medical emergency and services
  • Education of children
  • Travel and holidays

Use line of credit for

  • Home improvement projects
  • Outstanding projects with variable costs
  • Emergency expenses
  • Regulating irregular household cash flow
  • Utilities and fixed expenses

Eligibility of personal loan and line of credit

Both, if compared, are flexible loan options to meet your needs instantly. However, to get approval, you will need a good eligibility criterion. A good credit score and an impressive income will always be the criteria to get hold of these loan types. If you are looking out for a source of instant funds, you need to meet the eligibility as set by the loan provider.

Personal loan vs line of credit

Affordable: In terms of the total loan cost, a personal loan apply online is affordable. The line of credit is very costly with a high rate of interest. If you need a low-cost loan, you need to go for a personal loan.

Usage: A Personal Loan is good for large expenses and a high loan amount. However, with a line of credit, you can only get hold of a small loan amount. It will not be possible to meet the expenses of a wedding or a medical emergency as the limit is not so huge.

Repayment: In the line of credit you pay the rate of interest only for the amount you used. Bills are generate and you need to make the payment for the amount you have used. However, for a personal loan, the entire principal and interest are calculated in an EMI form, and you need to pay the EMI every month.

Wrapping up

Visit Clix Capital for an easy personal loan apply online process. It will help you with a low-cost instant personal loan so that you can meet your expenses in the right way. For easy approval, meet your eligibility criteria in the right order.

LEAVE A REPLY

Please enter your comment!
Please enter your name here