If you are looking for affordable financing solutions that allow you to get a small amount of money quickly, you can consider revolving cards in addition to the different types of small loan. Both solutions make it possible to immediately dispose of the required liquidity but differ significantly in the different repayment methods. If you are already wondering if it is better to choose a small loan or a revolving card, in this guide you will find all the useful information to make an informed choice in line with your needs.
To decide if it is better to choose a small loan or a revolving card, it is necessary to start by analyzing the advantages and disadvantages offered by both. Let’s start with loan personal. As the name implies, these are financing solutions that can offer small amounts of money, which on average are around € 3,000. This particular type of loan also requires guarantees and provides for moderately low interest rates.
We also report the presence of alternative solutions represented by the small loan without pay packet and therefore without guarantees. In this case, given the greater risk to which the credit institution is exposed, the interest rate applied will be higher and directly proportional to the increasing level of criticality of the applicant. The exact amount will be established by the bank, also in relation to the credit history of the subject.
Revolving cards have the same functionality as normal credit cards, but unlike these, they have a different debit method. In fact, the amount spent will not be directly debited from the current account, but can be returned by paying monthly installments of the constant amount to which interest will be applied calculated on the basis of the sums actually used for purchases.
The main advantage offered by revolving cards concerns the possibility of spending money independently of the funds available on the current account and repaying its debt in installments. To get one you won’t have to face particular formalisms, you just need to fill out a form and wait for it to be delivered.
The economic aspect, understood as the total cost of the loan, could be the decisive aspect for your choice. The first cost item undoubtedly derives from the interest rates applied which in the case of small loan (both traditional and online) are always lower than those required by revolving cards.
Revolving cards are subject to spending limits; in fact the figures that can be spent are undoubtedly lower than those provided by the personal loan for which, however, interest is paid on the entire sum and not only on that used. However, revolving cards are ideal if you have an immediate need for liquidity and want to pay the bill autonomously in installments. If, on the other hand, you usually plan your outings, the small loan can be the most suitable and also the most economically advantageous solution.