With an instalment loan, you receive the agreed amount paid into your account and can dispose of it freely. With a credit card you can make cashless payments in a large number of countries, shop in stores and online shops and withdraw cash from thousands of ATMs.
The advantages and disadvantages
With an instalment loan, you receive the agreed amount paid out to your account and can dispose of it freely. Before the loan is granted, your personal creditworthiness is checked and the monthly loan instalments and the term are tailored to your needs. Thanks to the monthly constant and precisely calculable instalments, you always know how your budget stands and your fixed expenses remain predictable. If you run into repayment difficulties, contact your provider immediately to find possible and suitable solutions together.
With a credit card you can make cashless payments in very many countries, make purchases in shops and online stores and withdraw cash from thousands of ATMs. In addition, with a credit card you have an interest-free time buffer until your account is debited. Card fees and commissions vary at home and abroad, so it's worth comparing before you apply, as each provider (e.g. Visa or Mastercard) has its own products for appropriate use. In addition, some merchants charge an additional fee if you want to pay with the credit card.
If the credit card statement cannot be settled on time at the end of the month, interest will accrue that is often higher than with an instalment loan. It should also be noted that the delayed account debit makes it more difficult to plan your own budget.
Seek advice on financial products from a specialist.
Save article as PDF: What are the advantages of credit and credit card?.pdf