Most Danes have a debit card of some sort. It can for example. be a debit card or maybe a credit card. But of course there are other types as well. One of them is the classic credit card, like Mastercard or Visa. You typically get these because you can get into a situation where you may need a little extra money and then you can use the credit card.
But then you can ask the question of not just getting a consumer loan instead. This is an issue we will take a closer look at below.
The difference between a consumer loan and a credit card
Whether you take out a consumer loan or get a credit card is obviously not the same and there are some significant differences. The biggest difference you encounter immediately is the repayment period you get. That is, the amount of time you have to repay the loan within. When you take out a regular consumer loan, a fixed term is typically agreed.
A credit card, on the other hand, has no fixed repayment date. But on the other hand, you have to be aware of whether you have the purchase amount available to use. If you do not have it, it can quickly become problematic, so it is important that you control how much you owe on the card.
What is the best choice can be difficult to say, because it largely depends on one’s own habits and needs. So let’s take a closer look at the possibilities and when they are suitable.
When you are in a situation where you would like to take out a consumer loan, you can contact your bank and apply. Of course, this is not always easy, so you can also apply for a quick loan. You do not have to provide a consumer loan for collateral, as you do for example. be it by car loan or a home loan. So it’s something more simple.
Collateral is provided so that the lender can be sure of getting his money back. That is their guarantee. But when it comes to unsecured consumer loans, you can instead expect to pay a higher interest rate each month.
When taking out quick loans and consumer loans, you will find that the processing time is very short. So it is a really good solution when you have to spend money in a hurry and do not have time to wait for several weeks of processing time.
When it comes to credit cards, it is actually the so-called debit cards that are the most widely used type. But they differ from the right credit cards in that the money is deducted directly from the account, and you can’t make overdrafts.
When you use a real credit card, it works so that you get a refund on the amount of use. The time limit for the money being drawn on the card varies a lot, but you can always ask at the bank. But typically, there will be between 30 and 50 days to go.
There may be various benefits associated with having a credit card, so be aware of this. It varies according to the type of credit card. A gold card from Mastercard has, for example. a higher consumption limit than a regular one. In addition, you can earn points for shopping and the like.
What is best for you can be difficult to say. A credit card is a good solution for travel where you often cannot use debit cards and where you do not want to carry too much cash. The consumer loan is a good solution if you have a real plan with the money and do not need credit at a later date. So find out what you need and choose what suits you best.