Hyderabad: Credit cards are used not only for making purchases, but also as a means of immediate loan in emergencies. Compared to personal loans, they are availed faster. There is no need to submit any documents. While taking a loan on a credit card one should understand the rules and regulations before proceeding further.
Purchases can be made with credit cards apart from that sometimes money can be withdrawn from ATMs within the allowed limit. Apart from this, personal loans can be taken on credit cards. The card companies give this loan depending on the way the credit card is used and the credit score.
It is an unsecured loan: Not all credit card holders may get this loan. Banks and card companies inform in advance how much loan they will give on the respective cards. Cash will be credited to your account with a click of a mouse when you needed the cash. It is an unsecured loan. When withdrawing cash with a card, interest has to be paid on the day of withdrawal. There is a fixed tenure when taking a loan with a card. Around 16 to 18 per cent interest one has to pay. A maximum loan tenure of 36 months can be chosen.
The limit does not decrease...suppose you withdraw cash from an ATM using the card.. the limit of the card decreases to that extent. There is no connection with the card limit while taking the loan. This will make your purchases hassle-free.
Without documents... banks give personal loans on the cards based on the documents you submit while taking the credit cards. Therefore, there is no need to provide any other documents separately.
Can check loan details online: You will know about loan approval in advance when you check your card details online. How much is the interest? All the details like duration and EMI amount can be known. Try to use this facility only in emergencies.
EMI card bill... when taking this loan.. the EMI card bill has to be paid, along with the interest and principal amount. Therefore, there is no other date for installment payment. Some card companies offer a period of five years. But, it is always better to limit it to three years.
Avail loans during emergencies...this opportunity should be availed only when money is required. If available, other avenues should be explored. Credit card loans have a high-interest rate. Make sure your total EMIs do not exceed 40 per cent of your income. If we don't pay the card bills on time, we get stuck in debt. Credit history and credit score will also suffer.
