Paying Credit Card Dues with a Personal Loan

1. Paying Credit Card Dues with a Personal Loan

2. If you are a regular user of a credit card than you must be convinced with the convenience provided by a credit card. Swiping a credit card for availing goods or services is as easy as ABC. Credit cards are nothing but another form of a pre-approved personal loan.

3. Your financial life will go very smooth until and unless you are paying credit card dues on time. But the problem starts when you start spending more than what you can afford and fail to repay your total dues every month. Missing a single payment of one or another credit card can bring much financial pressure on you.

4. Here are the reasons why one should take a personal loan to pay off credit card dues. over Interest Rate- The interest rates of a personal loan is relatively lower than credit card interest rates. A credit card company can charge you an interest of more than 40% whereas personal loans are available from 15 to 20%. So taking a personal loan will save you much of interest paid.

5. Multiple Loans to One Single Loan- Taking a personal loan to pay the outstanding amount of multiple credit cards is always appreciated. Your several credit card loans will come under one umbrella. So you don’t need to keep a track of many numerous dates and payable amount. One single EMI is even helpful in making the budget for monthly expenses.

6. Improving Credit Score: Taking a personal loan for paying credit card dues is one factor for improving your credit score. Shifting from a high-interest rates loan to a low interest rate loan shows your economic concern and impacts positively on your credit score.

7. Flexibility in Fixing The Tenure or EMI: While applying for a personal loan, it is solely the decision of the borrower on the length of tenure and the amount of EMI as well. Personal loan tenure can be as long as 5 years or 60 EMIs. So if you want your EMI to be light to your pocket than you can opt a lower EMI with a longer tenure.

8. Faster Disbursal of Loan: A personal loan takes relatively less time in processing. You can even go for a personal loan online, which is supposed to be disbursed within 24 hours. Such instant personal loan is available with almost all the Banks and NBFCs.

9. Things to consider before availing a personal loan for credit card debt repayment Know Your Credit Score- A credit score plays very important role in granting your loan. A bad credit score can result in getting a loan with a higher interest rate. So before applying for a personal loan check your credit score

10. Compare Interest Rates: The interest rate of personal loans varies lender to lender. Some lenders give out a personal loan at the interest rate of 11% p.a. while some others charge an interest rate of 15.50%. So an adequate market research is very important before availing a personal loan.

11. Search for Alternative Loan Options- One can online apply for a personal loan and get it disbursed easily within a day. But before going for an unsecured personal loan it will be better to search for alternatives.

12. To sum up, it is always a better and cheaper option to pay off your credit card dues with a personal loan. It makes a good financial sense to go with a personal loan when you are debt trapped with credit cards. If you are financially disciplined, soon you will be able to repay your personal loan and can enjoy a life with an economic freedom.