Loans vs. Credit Cards ~ Pinoy Reviews

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Thursday, November 6, 2008

Loans vs. Credit Cards

It has been increasingly easy to apply for a credit card these days. In fact, more and more people are using credit cards. Credit cards are a convenient way to pay; you don't have to carry cash with you plus you can choose to pay outright or in installments.

Maybe some of you use the cash advance facility of your credit card in liue of loans because applying for loans is getting harder and harder these days. While the cash advance option on your credit card is easy to use, be warned that the interest is more than tripled compared with just applying for a regular loan.

Credit cards aren't covered by the standard interest rates that the BSP prescribed so banks charge a lot higher. It may be wise to use the cash advance option for a REAL emergency but not for your regular purchases. Plus, if you're not able to pay your cash advance on time, they'll not only charge your for the interest for the cash advance but the interest for your current credit card purchases as well so it's quite easy to be buried in debt if you frequently use your credit card. Remember, moderation is the key.