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4 Tips for Smarter Credit Card Use

A consumer who has an emergency or an important need might be tempted to apply for bank loans. Bank loans are amazing options for getting the funds one needs for auto purchases, home purchases and business ventures.
However, credit cards can provide an alternative option that may benefit the consumer more than a traditional bank loan can benefit that person. The following are some reasons that a consumer may want to consider applying for a credit card:

Credit Cards Funds Revolve

Most bank loans have an absolute dead-end repayment structure. Once the consumer repays the advance, he or she will have to reapply for another loan. A credit card is a revolving account, which means that the funds replenish with each payment. Therefore, a consumer can use a credit card as a permanent source for future emergencies that arise.

 

Credit Cards Have Less Paperwork

Most bank loans have an absolute dead-end repayment structure. Once the consumer repays the advance, he or she will have to reapply for another loan. A credit card is a revolving account, which means that the funds replenish with each payment. Therefore, a consumer can use a credit card as a permanent source for future emergencies that arise.

 

Credit Cards Have Less Paperwork

A traditional loan from a bank often requires a high credit score along with a mound of paperwork and red tape. A consumer has to do a great deal of work to apply for a traditional bank loan. Credit card applications are quick, however. They do not involve any paperwork. The applicant can complete a two-minute application that requests only crucial information. The debtor has to notify the creditor of information such as housing status, annual income, social security number, address and the like. Many credit cards offer 60-second approvals, as well. Therefore, an applicant will know his or her status almost immediately. A new card will arrive in the mail within 60 days.

 

Credit Cards Have Benefits

Credit cards offer a wide range of benefits to consumers. Cardholders can earn points and cash that they can use for cars, savings and random shopping adventures (see also 5% cash rebate UOB credit card: https://www1.uob.com.my/personal/cards/credit/uob_one_card.html). Credit cards can assist consumers with building their credit, as well. Many positives exist with credit cards that consumers use properly. The traditional loan is still an efficient source for large funds, but the credit card is a leader in its own right.

 

Finding the Best Credit Card

A credit card comparison tool can help a consumer to locate the right card. The comparison tool can help the person sift through elements such as consumer reviews, features, benefits, fees, credit score requirements and the like. The person will simply choose the card that best meets his or her current lifestyle. Next, the person will take two minutes to apply for the card.