Credit can be a touchy subject. It’s something that people generally avoid speaking about, but this is bizarre. After all, the majority of us have taken out credit at some point in our lives. It’s an effective way to cover costs up-front when you don’t have the cash to hand, giving yourself more time to pay off the sum down the line. However, the lack of discourse on the subject means that people often dive head first into credit agreements without really knowing what they’re signing up to. This means that they end up in debt, with little hope of making their way back into the black easily. While you might be lucky enough to land a decent agreement straight away, it’s much more likely that you’ll actually end up tied into a bog standard deal when there are so many more preferable options and alternatives out there on the market. So, how can you ensure that you get the right type of credit to suit your needs? Read on to find out!
Credit Cards
The first port of call for those looking to take out credit is credit cards. These are a form of an open-ended loan, which means that you can borrow the available money on them over and over again. A personal loan offers you a fixed sum that you have to pay back. Once it’s spent, it’s gone. But with credit cards, you can spend some, clear some, then spend the cleared balance again. Credit cards are brilliant for smaller, regular purchases. In fact, even if you have the actual cash money readily available to make your purchases, it can prove more beneficial to you to make purchases on your credit card instead. Why? Well, one of the beauties of credit cards lies in consumer protection. When you make a purchase on a credit card, the credit card issuer assumes joint responsibility with the merchant to ensure that you are delivered the product as described. If you are purchasing products online, you can never be entirely sure that you’re going to get exactly what you see, as product photography can be extremely misleading. When buying on credit card, you can be reimbursed the full amount should the quality of the goods fall below parr. Credit card use also improves your credit score. Just make sure to keep to repayment dates and clear your balance. So, how do you choose the best credit card for your needs? Well, you scour the market for the best offer. Look at comparisons such as discover it vs chase.
Loans
As we have just noted, personal loans supply you with a sum of money that can only be spent once. They are generally the best option for those who require a little extra cash to tide themselves over between paychecks or to fund expensive projects or ventures. Try to find a type of personal loan that has “unsecured” debt, as this will not require collateral: you don’t have to offer your home, car, or any other personal belonging up as a security backup should you miss repayments.
These are just two different credit options available to you. But both can prove perfect if you take your time and choose them wisely!
