Personal Loan vs. Credit Cards: What Works for You?

When the unexpected happens, too often most of us reach for a credit card. While credit cards can solve your problem today, spending your credit comes at a cost.

Credit cards are unsecured revolving debt, and most have extremely high interest. It’s often so high that if you don’t pay the balance right away, you end up paying interest payments of double, even triple, the amount they originally spent on the card. That’s probably why Americans now carry over one trillion dollars in credit card debt.

If credit cards are not the best idea for emergency spending, what are the alternatives available? Actually, there are many other options available. Advance America has loan options to help you out in just about every situation.

Personal Installment Loan vs. Credit Card

 

Installment Loan

Credit Card

Speed of Payout

15 minutes (minimum) to 24 hours (maximum) Immediate.

High Credit Score?

Credit score is a factor in approval decision. Credit score determines approval and rates.

Interest Rates

Fixed. Variable.

Budget-friendly?

Fixed monthly payments make it easy to plan. Variable rates and compounding interest can throw a budget out of control.

 

You might think you can’t get a personal loan for an emergency expense. And even if you could, it’d take forever to be approved. Well, neither is true.

Is a Personal Installment Loan as Quick as a Credit Card?

At Advance America, you can apply for a personal loan and get an answer on your application within 15 minutes. Once approved, you’ll have cash-in-hand or in your bank account within 24 hours.

Do You Need a Good Credit Score for Installment Loan Approval?

Don’t have perfect credit? Don’t worry. When you apply for an Advance America installment loan, we don’t rely solely on your credit score, but use other factors and review additional documents  to approve your loan. It is possible to secure an installment loan with bad credit.

How Do Interest Rates for Installment Loans and Credit Cards Compare?

Using a credit card for a quick expense can really cost you. You get hit with an interest charge every month and, if it’s not paid off, the monthly interest gets compounded. You end up paying interest on the interest! Even worse? Many credit cards have variable rates, meaning the rate can go up every month. And that’s on top of annual fees and late fees.

Installment loans typically provide one fixed interest rate: so you can know exactly how much you’ll owe at the end of the loan. The fixed rates for installment loans can also be lower than the variable rates that credit cards offer.

Better for Your Budget: Installment Loans vs. Credit Cards?

An installment loan offers a fixed payment each month, so you won’t need to guess how much to pay. That lets you plan your budget with certainty.

Credit cards variable rates can blow your monthly payment beyond your budget and catching up on credit card debt will always mean less money in your pocket.

The Benefits of an Installment Loan

If you’re in a bind, while the ease of a credit card solution can be appealing, installment loans can get you cash just as fast, with fixed interest rates to keep your budget intact.

Title Loans vs. Credit Cards

 

Title Loan

Credit Card

Speed of Payout

Immediately following car evaluation. Immediate.

High Credit Score?

No credit score required. Credit score determines approval and rates.

Interest Rates

Fixed. Variable.

Budget-friendly?

Fixed monthly payments make it easy to plan. Variable rates and compounding interest can throw a budget out of control.

 

But let’s say you don’t qualify for a personal loan. You still have options. If you own your vehicle, Advance America offers title loans.

How Does a Title Loan Work?

A title loan is a secured loan that uses your vehicle as collateral. The value of your vehicle and the state where you live will determine the maximum size of your loan. Of course, you can continue driving your vehicle while you pay off the balance. 

Is a Title Loan as Quick as a Credit Card?

For many people, title loans are far easier to get than an unsecured personal loan. At Advance America, you just need to drive to one of our locations and bring the car’s title. We will evaluate your car and can offer a loan within minutes. You can drive away with cash-in-hand.

Do You Need a Good Credit Score for Title Loan Approval?

You do not need a good credit score to qualify for a title loan. Just stop by with your vehicle, title, and a few other qualification documents.

How Do Interest Rates for Title Loans and Credit Cards Compare?

A fixed rate is applied to title loans, ensuring that you can plan for payment.

A credit card’s variable interest rate can compound with fees on top of fees, and the ever-present temptation to borrow more money by using the card.

Better for Your Budget: Title Loans vs. Credit Cards?

With regular and dependable monthly installments, title loans let you fit your cash crunch into your budget.

The Benefits of a Title Loan

Your title loan is a short drive away: use the convenience and ease of quick loan approval to cover your expenses today and use the predictability of a fixed-rate title loan to get the most out of your budget.

Cash Advance Loans vs. Credit Card Debt

 

Cash Advance

Credit Card

Speed of Payout

15 minutes (minimum) to 24 hours (maximum) Immediate.

High Credit Score?

Good credit not needed.

Credit score determines approval and rates.

Interest Rates

Fixed. Variable.

Budget-friendly?

Fixed monthly payments make it easy to plan. Variable rates and compounding interest can throw a budget out of control.

 

Advance America offers cash advance loans, which can provide advantages over using a credit card.

How Does a Cash Advance Work?

A cash advance is a quick loan against your next paycheck. Good credit isn’t needed and you can typically get money the same day you apply. Since these are tied to your paycheck, the amount you can borrow is typically no more than $2,000. Plus, they must be repaid in full, usually within two to four weeks.

Is a Cash Advance as Quick as a Credit Card?

You can get an instant approval decision when applying for a cash advance. You can get cash right away when approved in store. If your online application is approved before 10:30 AM ET (M-F) are typically funded to your bank account by 5PM ET same-day. Approvals after 10:30 AM ET are typically funded in the morning the next banking day. Bank days are Monday-Friday, excluding holidays.

Do You Need a Good Credit Score for Cash Advance Approval?

A low credit score will not prevent you from approval.

How Do Interest Rates for Cash Advance Loans and Credit Cards Compare?

Interest rates for credit cards are typically comparable to interest rates for cash advances.

Better for Your Budget: Cash Advance vs. Credit Cards?

The good news is, unlike a credit card, there are no lingering payments hanging over your head for months or years and no compound interest to worry about. You get the money you need, you repay it on payday.

The Benefits of a Cash Advance

Cash advances get to your wallet right away and are repaid within four weeks: so you won’t worry about interest rates, ballooning balances, or busting your budget. 

Talk to us about the loan you need

When it comes to a personal loan versus credit card, knowing the big picture can help you save time and money. Before you give up and just say, “Charge it,” take a look at how Advance America loans can get you the money you need today. With different types of personal loans to choose from, Advance America gives you the flexibility you need to manage your financial life efficiently without getting bogged down in credit card debt.

The Advance America advantage

Since 1997, Advance America has helped millions of hardworking people with a variety of financial solutions including Payday Loans, Online Loans, Installment Loans, Title Loans and Personal Lines of Credit.

134+ million
loans issued
1,200+ stores
and online loans
23+ years
providing loans