Credit Card Or Gold Loans: Which One Should You Opt For?

In the case of an emergency, like a sudden medical need, a wedding, or a job loss, you need to arrange for money urgently. Thanks to the different credit options available, it’s important to choose the right one. Credit cards or gold loans are also two viable options. Among the two, a credit card is an unsecured form of loan, while a gold loan is a secured form of credit. With credit cards, a cardholder is allowed a certain credit limit each month and they have to repay it on the due billing date. On the other hand, for gold loans, customers can access funds by weighing the value of their gold assets. In the case of credit cards, banks typically have all the details of a customer, which includes an applicant’s credit score, stability of income, existing debt, and others. Depending on your eligibility based on these details, banks may either accept or reject a credit card. In the case of gold loans, there’s not much required from a customer in terms of eligibility. Hence, it’s a more accessible option. Among gold loans and credit cards, the interest rates for gold loans range between eight per cent to 26 per cent per annum, while in the case of credit cards, it’s much higher, between 18 per cent to 42 per cent. Also, when it comes to gold loans, the higher the value of your gold assets, the higher will be the loan amount. Whereas, credit cards offer instant access to funds but there are limitations when it comes to your credit limit. This limit changes based on your card, your credit score, repayment history, and income stability. 

Buy cryptocurrency

Source link

Refer And Earn Demat Account – Get ₹300 | Referral Program

Open Demat Account In Angel One For FREE