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Instant Small Loans Apps vs. Credit cards

Instant small loan apps vs credit cards both serve the single goal of helping with immediate finance without any hassles.

If you have anything to buy on an urgent basis and don’t have that much amount of money in your bank account, you can swipe your credit card and continue shopping.

While those with instant small loan apps benefit from same-day loan sanctions.

So which one is the better option? When you need financial help, which one will you choose- instant small loans or credit cards?

Both are great options to support your urgent financial needs as you can get a personal loan without documents. Let’s go through the benefits to know which one is a better option.

How do a credit card work?

A credit card loan is a convenient way to pay when you require a small or big purchase. A credit card can be used physically in-store or online.

It comes with a downside too. If you lose control of your credit card purchase and cannot pay off all your balance in the time period, you will have to pay very high interest on the remaining unpaid amount. Over time it will push you into a debt trap.

The primary reason you can end up in this situation is that you do not need to pay off your balance all at once. You can keep using your card by just paying the “Minimum Amount Due,” which is mentioned on the credit card statement.

You can keep using your credit card until you exhaust any remaining balance. However, the interest keeps accumulating, and your interest will pile up much faster. Hence, this is why credit card loans are known as revolving debt.

Most credit card loans are unsecured. Some cards may provide some security, which is rare. A secured credit card does not require collateral, whereas you may have to put down a cash deposit as collateral for a secure line of credit.

When an instant small loan works better?

Instant small loan apps for a quick loan online are possibly a better option because it gives control over your repayment. Unlike a credit card, instant small loans are easy to avail of because the eligibility criteria are less strict. At Lenditt, the best loan app in India, you will get a personal loan for salaried employees based on your profile, qualifications, and needs. You can avail yourself of different types of instant small loans customized to suit your individual needs.

When comparing an instant small loan vs. a credit card loan, the difference between the two is that you get a sum amount upfront for an instant small loan. This is not the case with a credit card loan mostly used for purchases. Additionally, it is a personal loan without CIBIL and with these short-term loans, you only make repayments via pre-defined EMI over the loan tenure.

Instant small loan apps vs Credit cards – which one is better?