Loan against Credit Card?
Minimal banking operations due to COVID are paving way for more pre-approved DIGITAL loans as arguably the most reliable source of credit.
Because they involve NO PHYSICAL INTERACTION.
One of the most CONVENIENT types of digital loans is loan against credit card, which is offered to selected credit cardholders based on their card type, spending pattern, credit limit and bill repayment history.
Before applying for a loan against credit card, please remember:
1. Once the loan is availed up to the predetermined limit sanctioned by the card issuer, the credit limit stands temporarily BLOCKED up to the loan amount.
2. This is just a demarcation. All depends on your repayment capacity and past repayment behavior.
3. Though the credit card loans offer minimum tenure as low as six months, longer tenures increase your INTEREST COSTS too.
4. Plus, EMIs get clubbed with your credit card bill, and non-payment by due date will attract FINANCE CHARGES and LATE PAYMENT FEES. Hence, tactfully plan your loan tenure on your repayment capacity.
All in all, it is always advisable to go for personal loans, as they will cost you lower interest rates than a loan against credit cards.