Credit Card or Loans

Benefits and Information

Advantages and disadvantages of a credit card

The advantage of a credit card lies primarily in its flexibility. After activation and fixing of the loan amount, the user can use it at any time. In addition, you as the user can decide on the repayment. Depending on the outstanding amount, the credit card company only fixes a minimum amount, usually around 5%.

A term does not exist with the credit card, ie the repayment can be determined by the customer. In summary, it can be said that the repayment and associated costs are at the discipline of credit card users. The difficulty here is to maintain an overview and not to lose control of the costs, especially when owning several credit cards.

Is a loan cheaper?

A personal loan is cheaper, yes. Credit card fees are usually 12%. You will receive a personal loan from 4.5% and by law interest rates may not exceed 10%. In the end, a loan can be saved in the longer term, because the costs are clearer. From the very beginning, you specify in the credit agreement what you spend and for how long.

A personal loan is also more suitable if you need larger sums. You can borrow up to CHF 250’000.-. Protected by the Consumer Credit Act, you are only up to CHF 80’000.-, ie for higher sums you can not take out insurance. The interest rate is set by the bank for the loan. The creditworthiness of the customer, ie the payment behavior, as well as income / expenses are decisive.

Questions about loan or credit card

Any questions about this topic? Or do you already want a loan offer to be able to compare independently??
Our team requests your loan request in 24 hours and is also happy to answer your questions.