Personal Loan VS Credit Card VS BNPL
Today, the economy is out of the shadow. And people are spending more money. They are going on vacations and to family functions like weddings.
Some people don’t have much savings because they used them. Others take credit so they can spend money on things they want or need.
Personal loans, credit cards, and buying something on layaway are the most common ways to get more money.
“Personal loans, credit cards and also buy now pay later (BNPL) can help you raise money. You need to understand what sets them apart before you get any of them.” Mint quoted Adhil Shetty, CEO of BankBazaar.com as saying.
If you need a loan, you get the money in your bank account. You can spend it on things that are important to you. You pay for this by paying the money back slowly over time. The interest rate on a personal loan is 10-20% and depends on your job and how good your credit score is.
BNPL is when you buy something online and the company gives you without interest payments. It is new. Most companies give 3 or 6 months of without interest payments if you want to pay them back quickly, but for longer ones there are higher rates of interest.
BNPL can be good if you are getting without monthly payments, but it might not be so good for other things like vacations where cash is better to use instead. In these situations, you can either use a credit card or a personal loan.
Credit cards are helpful when you have lots of bills. With credit cards, you can spend money without using cash. You can repay the loan for up to 24 months depending on how much money is left. Sometimes this comes with a cost that is high. Credit card companies charge between 15-20% interest.
Which Is The Best Option?
Experts say that the best type of loan is a personal loan. You get cash in your hand and can spend it as you want. If you need to buy an air conditioner or something else, then get a BNPL (Bajaj) home appliance loan.
I hope you have liked our post which is related to the Personal Loan VS Credit Card VS BNPL and if you have any doubts related to it then comment below to let us know.