Personal Loan Vs Credit Card? Which One is Better for Funding Travel needs?
Jun 22,2021 Borrowing, CIBIL Score, Credit Card, OMLp2p Loans, Personal Loan, Digital Loan, Instant Personal Loan
Everyone needs a holiday occasionally to unwind. But whether it is 7 days backpacking trip or a weekend getaway, travelling can weigh heavy on your pocket. Many people opt for a credit card or a personal loan to fund their expeditions. But is one better than the other?
Using Personal Financing for Travel
Personal financing offers various advantages. It is an unsecured loan, which can cover all your expenses associated with travelling, including air tickets, travel packages, stay charges, travel equipment, etc. Nowadays, you can apply for personal financing online with minimum documentation requirements at OMLp2p.
The eligibility criteria for personal finance mainly includes your Credit score, Age, net monthly income, etc. With a quality Credit score, you can qualify for a sizable loan amount at lower interest rates.
Using Credit Card for Travel
With credit card, you can directly pay for your hotel reservations, banqueting, transport fees, and more on your journeys. Credit cards also offer superb incentives, such as reward points, cashbacks and coupons for spending.
Moreover, you can postpone your repayment by making minimum payments monthly. You can simply improve your credit limit with decent payment record, a quality Credit score, and a pre-existing relationship with the service provider.
Personal Loan vs Credit Card: Which is Better?
Personal Loan and Credit Card come with their own set of benefits. With Credit Cards, you can pay for your travel expenditures in real-time at 0% interest for the first 35-50 days. Nevertheless, the interest rate charged after the preliminary period can be pretty high in comparison to the Personal Loan interest rate.
With Personal Loan, as you get the amount upfront, you can strategies/plan your travel well in advance and avoid unnecessary spending. Similarly, unless you have a remarkably high credit card limit, you can borrow a relatively higher loan amount.
So, the answer which is a better option for travel? Well, It all Depends on your loan requirement, need for flexibility, loan tenure and other privileges, only you can determine which option works the best or better for your needs. Every financial institution comes with unique set of advantages for Personal Loan and Credit Cards. Hence, understand your needs and evaluate the advantages. The worthier contender will shine through.
Fund your travel plans with OMLp2p
Whether you want a lavish holiday or need funds for a trip, OMLp2p can help you with your needs. We offer Personal Loans for Travel starting at an attractive interest rate of 9.49% and flexible tenures up to 3 years.