What is better to take - a loan or a credit card
Posted: Wed Feb 19, 2025 3:51 am
If you choose the right program, you can get a long-term loan and beat inflation with a favorable interest rate. One option is the service package "Manage easily", which we wrote about above.
The choice depends on the specific situation. The card should be issued in the following cases:
if you often make small spontaneous purchases and can return their cost before the end of the grace period;
if you often need money before payday, you can stop borrowing from friends;
if you have a bad credit history (CH) and you start working on it: you can get a card with a small limit and use it for free. This is more profitable than getting a small loan, because with a bad CH they often offer very high interest rates;
if you want to earn cashback, and debit cards don’t have list of mobile number database such attractive programs;
if you plan to start investing, but your savings are not enough. Choose a deposit with flexible management and monthly interest capitalization or a savings account - for example, "Active income" or "Heading for a Dream" Put all your savings and the portion of your salary that you usually spend on purchases into it. Pay off the credit card for a month, then pay off the debt from a deposit or savings account. Do the same next month. Gradually, your savings will increase, and you will be able to consider additional investment options.
Loans are suitable in situations when you need a large sum for a long period of time - for example, you are planning to make repairs, get an education, go on a trip, buy expensive but irreplaceable equipment.
What is better - a loan or a credit card - is not quite the correct way to put the question. These products do not exclude, but complement each other, because the purposes of their use are different. Loans are needed for large targeted purchases, and cards are more suitable for small and spontaneous ones.
When you shouldn't take out a loan
Here is a list of situations in which taking out a loan can have negative consequences:
Frequent financial difficulties. If you have difficulties with budget planning, and because of this you constantly have to borrow, you should not increase the financial burden. Borrowed funds can run out before you notice. You should first learn to plan a budget. A credit card with a small limit can help with this, but you should use it very carefully - only for mandatory expenses and with mandatory repayment before the end of the grace period.
High debt load. When you have nothing to pay for your current loans, taking out a new one may seem like a good solution. But this is a misconception. With high debt load, there is a high risk of your application being rejected, and even if it is approved, you may be offered a high rate. It is better to use refinancing - combine all your loans into one with a reduction in the monthly payment.
Unreasonable purchases. You shouldn't use borrowed funds to buy a new smartphone if the old one is barely a year old. Try to resort to credit only in situations where expenses cannot be postponed, or they are an investment in the future. Examples of such expenses: education, buying a laptop with better characteristics for working in complex editors.
The choice depends on the specific situation. The card should be issued in the following cases:
if you often make small spontaneous purchases and can return their cost before the end of the grace period;
if you often need money before payday, you can stop borrowing from friends;
if you have a bad credit history (CH) and you start working on it: you can get a card with a small limit and use it for free. This is more profitable than getting a small loan, because with a bad CH they often offer very high interest rates;
if you want to earn cashback, and debit cards don’t have list of mobile number database such attractive programs;
if you plan to start investing, but your savings are not enough. Choose a deposit with flexible management and monthly interest capitalization or a savings account - for example, "Active income" or "Heading for a Dream" Put all your savings and the portion of your salary that you usually spend on purchases into it. Pay off the credit card for a month, then pay off the debt from a deposit or savings account. Do the same next month. Gradually, your savings will increase, and you will be able to consider additional investment options.
Loans are suitable in situations when you need a large sum for a long period of time - for example, you are planning to make repairs, get an education, go on a trip, buy expensive but irreplaceable equipment.
What is better - a loan or a credit card - is not quite the correct way to put the question. These products do not exclude, but complement each other, because the purposes of their use are different. Loans are needed for large targeted purchases, and cards are more suitable for small and spontaneous ones.
When you shouldn't take out a loan
Here is a list of situations in which taking out a loan can have negative consequences:
Frequent financial difficulties. If you have difficulties with budget planning, and because of this you constantly have to borrow, you should not increase the financial burden. Borrowed funds can run out before you notice. You should first learn to plan a budget. A credit card with a small limit can help with this, but you should use it very carefully - only for mandatory expenses and with mandatory repayment before the end of the grace period.
High debt load. When you have nothing to pay for your current loans, taking out a new one may seem like a good solution. But this is a misconception. With high debt load, there is a high risk of your application being rejected, and even if it is approved, you may be offered a high rate. It is better to use refinancing - combine all your loans into one with a reduction in the monthly payment.
Unreasonable purchases. You shouldn't use borrowed funds to buy a new smartphone if the old one is barely a year old. Try to resort to credit only in situations where expenses cannot be postponed, or they are an investment in the future. Examples of such expenses: education, buying a laptop with better characteristics for working in complex editors.