While everyone knows about Credit Cards as a means of gaining access to cash even when one does not have the adequate amount in hand, not many know that they can also get an Instant loan on credit card that can be used to meet sudden financial emergencies. Credit Cards can come in handy in a variety of situations and it is one of the principal tools of cashless transactions today.
Those who use credit cards frequently also get reward points and other additional perks that often help them to save costs in other departments. However, it is also true that credit cards are also one of the most expensive ways to finance one’s purchases because unable to pay back the bills on time would incur very high rates of interest.
For example, a credit card can be helpful for short term financing which many cardholders are unaware of. These are more or less similar to traditional loans but these loans can be pre-approved as well. The loan amount has to be within the credit limit of the cardholder. And unlike traditional loans, these loans are quickly disbursed. Since a financial background check has already been conducted by the respective bank when the credit card was issued, no elaborate checks are conducted before the disbursal of the loan, which makes the process quick and hassle-free. The interest rates on credit card loans are mostly between 12% and 18% and the money is often disbursed in a few hours in case of instant loans.
Those who are opting to apply for a new credit card can hence be benefitted from the number of advantages that loan on credit card provides.
- First and foremost, these loans are not just pre-approved, but they are also unsecured loans. This means the loan applicant would not have to provide any form of collateral to get the loan approved.
- With instant loans, one has the option to convert the expenses into simple EMIs. This makes repayment easier and it becomes easier to pay off the loan as well as make the subsequent payments on the card itself. Instant loan amounts are restricted to the credit limit of the cardholder and after it has been broken up into EMIs, it comes to a fairly affordable amount each month and one can easily glide over the crisis.
- In case of credit card loans, there are no requirements for any kind of documentation, guarantor or even post-dated cheques.
- The application of the loan can be made online and it is disbursed much earlier than traditional loans. Hence, there is no requirement to visit the branch office personally and one can apply as soon as one needs the money. The money is directly transferred to the respective bank account of the applicant.
It is, however, essential that the applicant has a good financial history. Most of the time instant loans are applied for because the amount is used to pay off some other loan from some other creditor. That does not mean that the applicant loan issues are resolved, in fact, as loans on Credit Cards have much higher rates of interest, the person in question might have just gotten himself in a loan trap. Hence, it is advisable to use the instant loan option with caution. It is, however, without a doubt, one of the best ways to get access to instant cash, and those who find themselves in situations like medical emergencies can definitely opt for it and then pay back the credit card company later.
Gaurav Khanna is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends. You can find Gaurav on Linkedin.