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| Fuel your spending through unsecured loans not credit cards |
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Credit cards seem to be so much easier to obtain than unsecured loans. A
proliferation of adverts both on the TV, via direct mail and through the
internet can often make a credit card application appear as easy as flicking a
switch. However, the simple fact is that spending on credit cards does not make
financial sense.
The chances are that if you have one or more credit
cards, you?ll probably also be eligible for an unsecured loan. If so, borrowing
in advance to fund a particular purchase or project will be far cheaper if you
take out an unsecured loan. Why? Well, credit card rates will usually have an
APR of anything between 14% and 25% once any introductory period has ended
whereas you?re likely to be offered a rate of between 7% and 16% for an
unsecured loan and, if you?ve got a good credit record, it?s likely that your
loan?s APR rate will be in single figures so you can instantly see just how much
cheaper it is to borrow using an unsecured loan than by using a credit card or
multiple credit cards.
Furthermore, your loan rate will be fixed each
month throughout the whole duration of the loan, unlike with a credit card
where, in giving you a month?s notice, a credit card provider can increase your
interest rate as much as they like.
Therefore, it obviously makes sense
to take out an unsecured loan as opposed to funding things via one or more
credit cards. After a while, steady spending on a credit card will soon build up
and, with the ever increasing limits a feature of credit card companies, you may
soon find yourself in a lot of debt and unable to meet your minimum monthly
payments.
Credit cards are designed to have you slowly but surely hitting
your maximum spending limit on them whereas, with an unsecured loan, you simply
borrow the amount you need to fund a particular item and this prevents you from
overspending and, consequently, makes a loan a far more sensible option than
using a credit card(s).
Home Loan/Student Loan/Personal Loan/Mortgage Loan/Auto
Loan/Bad Credit Loans:
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