Are you looking to apply for a loan that doesn’t require you to risk an asset? Both personal loans and credit cards can fulfill your needs. Today, you can easily apply for a personal loan or a loan on a credit card online, from the comfort of your home.

1. Understanding Both Financing Options

To make a better choice, first, understand what a personal loan and a loan on a credit card are. 

• Personal loans are unsecured loans used for a variety of purposes: 

• Medical expenses 
• Home repair/improvement
• Vacations
• Debt consolidation
• Personal loans can be more expensive on the pocket compared to unsecured loans, since they do not require any collateral for disbursing the funds.

• Credit card loans are pre-approved loans available to eligible cardholders that don’t require any documentation. They provide a quick way to obtain unsecured credit. 
• This form of loan allows you to borrow a portion of your credit card limit that has not yet been used.

2. Comparison Of Key Features

Personal loans and credit card loans may appear to be similar, but they are not exactly the same.

• Interest Rate

• This is the most significant factor to consider while availing of a loan. Personal loans typically have an interest rate of 9.99-22%, while credit cards have an interest rate of 13-42%. 
• The rate you get depends on the financial company and your eligibility. 

• Loan Amount

• Personal loans allow you to get a larger sum of funds on credit.
• A credit card loan is a good alternative if you need a small amount of money. 

• Documentation
  • A personal loan requires numerous documents for approval and takes several days to process. 
  • A credit card loan requires no documentation and is much easier to get.

• Tenure
  • Credit card loans may have shorter repayment durations.
  • Personal loans may have longer repayment tenures.

3. How to Make a Decision

Decide on one based on your financial situation, the term for which you require the loan and how quickly you require it. If you are clear about your needs, it’s easier to make a smart decision.

• For medical emergencies or large purchases, perhaps a personal loan could be ideal.
• For short-term, small-ticket purchases, a credit card loan can be the better choice.

While not everyone is eligible for it, credit card loan applications are easy to complete. There is no paperwork involved and such loans are approved quickly. Applying for a loan with a credit card can be done online or via a mobile application. You can easily apply for a loan against the One Credit Card with the help of their powerful One Credit Card mobile app and tapping on the OneCash feature. The One Credit Card also allows you to convert your bills into EMIs to improve your affordability. This stylish card is also lifetime-free, so there is no joining or annual fee. Apply online for the One Credit Card today and enter a world full of benefits!

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