I am planning to go for a personal loan to meet my marriage expenses. I was just wondering if I could use my Credit Card to meet my marriage expenses, and later agree with the bank to pay the dues in EMIs. Will this work out cheaper than personal loan?
2006-10-25 21:34:53 · 6 answers · asked by venu g 1 in Business & Finance ➔ Personal Finance
Certainly NOT!
EMIs on a Credit Card are usually charged at interest rates of 24% to 36% per annum. Whereas Personal Loans come at 14% interest rates.
So for every Rs 1000 you borrow from a credit card (as opposed to the Personal Loan) you lose anywhere between Rs 100 to Rs 220 each year.
Just go for the Personal Loan. But it is usually much harder to get.
2006-10-25 21:59:07 · answer #1 · answered by justinageneralway 3 · 0⤊ 0⤋
If you job is secure, go to a local credit union and open a savings account. Then apply for a loan through your credit union. You will get a much better interest rate, you can have the payments deducted weekly from your savings account or twice a month however you get paid, and have your check direct deposited or a portion of it direct deposited there, you can also open a checking account there. Credit Unions are by far the best value. Credit Cards are very expensive, and chances are you will run it up before you know it. some Credit unions have signature loans and open end loans where you can apply for more or get up to a certain amount. I pay my carpayments weekly and it is so much easier than coming up with a $250 car payment I pay 63.98 a week! I don't even miss it that way. I pay direct deposit, I have 1/2 my check go to my savings account and half to checking. I can move it at anytime on line if I need to.
2016-05-21 21:41:56 · answer #2 · answered by ? 4 · 0⤊ 0⤋
Venu G u want the credit card loan chase thru out ur life then opt for it. Personal loans are cheaper, easier, and cleaner than credit cards. credit card will kill u beaware.
2006-10-26 01:32:01 · answer #3 · answered by Loganathan Raja Rajun R 3 · 0⤊ 0⤋
Absolutely NOT.
Credit card charges around 36-48% per annum and personal loans are available at 14-18% so you can decide which one is cheaper...
2006-10-26 01:02:56 · answer #4 · answered by Rahul 2 · 0⤊ 0⤋
Definitely PL is much cheaper than CC. Moreover, Indian Credit Cards companies are indulged in malpractice and there are lot of hidden charge and other problems associated. So say NO to credit cards. Check these links
1. http://www.whoisdeep.com/2005/07/13/icici-the-worst-bank-ever/
2. http://www.arjarapu.com/blog/?p=12
3. http://www.arjunprabhu.com/blog/archives/2005/04/27/icici-bank-a-bad-experience-for-many/
Though it about one bank, most Credit Card Companies operate the same way.
And yes.. if you are going for PL... never mandate ECS...always go for PDC.
2006-10-29 18:52:08 · answer #5 · answered by Anonymous · 0⤊ 0⤋
No the rate of interest is more ina credit card than personal loan
2006-10-27 01:03:58 · answer #6 · answered by leena_070586 3 · 0⤊ 0⤋