GETTING THIS LOAN IS EASY
You come across an opportunity to make money through some investments. Unfortunately you do not have sufficient funds with you to make any investment. If you think of availing a bank loan, on a short term basis, it will not be easy. It will take time and the interest rate too may be high. When you are placed in such a situation, the only option available to you will be a credit card loan. By opting for this loan, you will get the needed funds in a much quicker time. You should, however, keep one thing in mind, i.e. the investment you are going to make should fetch you more return, than what you will be spending by way of interest in getting the loan.
It is a known fact that there are many banks which are willing to give loans to persons with good credit or whose credit cards have a high credit limit. In fact, the banks themselves – in some cases the credit card providers – do write to such persons conveying their willingness to offer loans. Some of them even go to the extent of enclosing blank checks which could be used by the concerned credit card holders, if they so require. They will charge interest based on the quantum of loan and the repayment term; the rate of interest could be either static or staggering, during the whole period of the loan.
OPTIONS ARE VARIED
The options, for these loans offered by the yahoo companies, will not be the same. They will vary. Every company has a set of rules relating to such options. Therefore, whether it is relating to processing fee or rate of interest or term of repayment, everything will be different from one company to another. It will, therefore, be worthwhile if you collect all the details relating to their offers and then make a comparison of the pros and cons of each offer. After this exercise, you may take a decision in choosing the company with whom you would like to have the dealing. The ultimate aim is, the deal should be favorable to you in all respects and the rate of interest and terms are affordable to you.
WHICH IS ADVISABLE – A SHORT TERM OR A LONG TERM?
First of all, you should bear in mind that the most important thing is this credit card loan should be treated just as a ‘stop-gap’ arrangement. This means that the loan is to be availed only for a very short period. As soon as you get enough funds from whatever other investments you would have made, you should make it a point to repay the loan. If it is possible, you should try to settle the loan before the date of expiry of the credit card. If the loan was for a period of 12 to 16 months at an interest rate of 0%, it should be repaid within a maximum period of 18 months. If not, the loan will carry interest at the current rate.
GATHERING COMPLETE DETAILS IS NECESSARY
There is certainly an advantage in availing the credit card loan because of its lower interest. This certainly will help you if you decide on making a somewhat bigger investment. It is, however, very necessary that you have all the details in respect of the offers of this loan before you actually apply for the loan. After going through all the details very carefully, as said earlier, and after satisfying yourself fully, you should sign the agreement relating to the transaction