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Leemba 11-30-2016 07:28 PM

Installment Loan Vs credit card help
 
We are hoping to buy a house in 18 months and I am currently trying to free up our debt to income ratio. I currently have an installment loan at 11% interest and making a payment of $350 per month. I have a credit card offer at 0% interest until January 2018. I also have about $400 to $500 per month extra to pay on debt. Would it be better for me to use the 0% interest credit card to pay off the installment loan and then use that 350 and the extra money to tackle the other debts we have or just start tackling the debt?

Thank you!!!

theviewabudhabi 12-06-2016 07:57 AM

Re: Installment Loan Vs credit card help
 
Get rid of the debts ASAP from my opinion and then plan other things.

Paul@GFS 12-12-2016 08:42 AM

Re: Installment Loan Vs credit card help
 
Well it depends on your financial situation. If you're confident enough to settle the installment loan first, then you may proceed with that since you have the 0% credit card offer for another year. But what I usually see under such circumstances is that the borrowers take the plunge in settling the debts first.

Jovanny 12-26-2016 11:30 PM

Re: Installment Loan Vs credit card help
 
I would suggest you to pay off the installment loan.

g_nicks 09-07-2017 03:01 AM

Re: Installment Loan Vs credit card help
 
A credit card is a line of credit from which you can borrow money at any time, up to your credit limit. A personal loan is a fixed loan which you repay in equal installments for a predetermined period of time.
A*credit card is what’s known as revolving debt. A credit card has a credit limit that you can use as often as you like and it’s up to you to pay the entire balance off at the end of the month. If you don’t, you begin to “carry a balance”—you’re paying interest on a debt but you still have the ability to make new purchases.
A personal loan, on the other hand, is a fixed debt. You receive a fixed amount of money and repay it in equal installments over a fixed number of months.
The danger with credit cards, of course, is that you can always charge more at any time up to your credit limit, keeping you stuck in debt. With a personal loan, you know when your debt will be repaid and that*you can’t borrow more money without completing a new loan application.
Like a credit card, a personal loan is unsecured,*as opposed to an auto loan or a mortgage, which are secured*by the vehicle or real estate they are used to finance.The difference is if you stop paying a secured loan, the bank can repossess your car or foreclose on your house.*For this reason, interest rates on personal loans are higher than secured loans but, in some cases, personal loan APRs can be lower than*credit card rates.

angel anna 10-05-2017 07:35 AM

Re: Installment Loan Vs credit card help
 
Installment loan means you have to payback a certain amount of money each month.
Eg: Auto loans, Mortages

Using credit card you can borrow money at any time. But you have to keep a good credit history always.There is always a limit on the money that you can borrow.

jennys 01-23-2018 12:33 AM

Re: Installment Loan Vs credit card help
 
Well, a decision to choose the credit product should entirely depend on your requirement. However I would share a quick rule to help you come to a decision. Always make the loan decision on 3 parameters—the cost, the amount and the duration. Credit card is one of the most expensive loans. You should never use them when you cannot afford the debt. Many prefer credit cards as they get to roll over balance and repay according to their choice. However this could be very costly delay and you should instead consider repaying on time. Besides, you can use credit card only owing to available limit.
On the other hand borrowing an instalment loan provides you cheaper loan at fixed repayment schedule. These are preferred by many as it helps them plan their finances. From 15 day loans to 50 months, loans are available online at a click of button. They are available in all forms, secured, unsecured, short or long and thus sky is the limit and you get ample choice.

To sum up use credit cards for small expenses wherein you just want to delay payment for a few days however when you seek funding resource instalment loans is the only viable option. Hope my answer helps you.

jane21august 02-19-2018 04:42 AM

Re: Installment Loan Vs credit card help
 
I would suggest you pay all your debt first and don't use your credit card it would only increase your debt more and more and you will be debt for a long period of time if you don't pay all your loan.


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