Everybody wants to experience the benefit of immediate access to finances or monetary resources with the least amount of hassle. With new improvements in technology and the financial lending sector, quick access to funds and easy payment options are now possible. An instant cash loan (which can be borrowed as a small cash loan on an Aadhar card) is one option for quick access to funds. Credit cards serve as another fiscal tool that allows you to make swift payments for items bought by you. So how do you decide which option suits you better? Both the above options have their own set of benefits when you are cash-strapped or need to clear debts.
What is an Instant cash loan?
Instant cash loans are essentially personal loans that get processed and disbursed quickly. The overall personal loan application process is also very convenient and can be completed online. First, you need a small cash loan on an Aadhar card. You are not obligated to liquidate your investments to make payments when you can avail of instant cash loans instead. The funds received as part of instant cash loans can be used to fund your requirements ranging from further education to medical expenses and home renovation, etc. Some of the primary benefits of such loans are mentioned below:
- Quick access to funds within 24 hours
- Prompt loan approval is possible on the instant personal loan application
- You can check your eligibility online on the lender’s website or app
- Low and competitive interest rates offered
- Personal loans are non-tangible that do not require any security or collateral
- Easy repayment and EMI options
- Minimal paperwork since the loan can be availed as a small cash loan on an Aadhar card
- Personal loans can help you build your credit score
What are Credit Cards?
Credit Cards work as a mode of payment and provide several benefits in the process. Credit cards pay for your purchases by borrowing funds from within a pre-approved credit limit that has been assigned to you. They work on the principle of a revolving credit limit and can be used repetitively. Since they allow you the option of deferred payment, you can easily use the card for your purchases, but make the actual payment later. Handy to use credit cards have replaced the need to carry cash. Some of the primary benefits of using credit cards are as mentioned below:
- Accumulate reward points, get cashback on transactions or air miles
- International transactions can be carried out, without any extra fees
- Direct payments can be made anytime – to the vendor or online
- EMI facility available on purchase of expensive items
- Interest-free credit period of 45-60 days provided
- Serves as a record of all your transactions made on the card
- Credit card usage can help you build your credit score
Let us do a quick overview and compare Instant Cash Loans vs. Credit Cards
| Instant Cash Loan | Credit Card |
| Usage conditions allow you to avail the funds in one lump sum and then pay back gradually. | Usage conditions allow you to buy right now and pay later. |
| Involves the receipt of a one-time cash payment or credit installment credit which can be used only once. | Involves a revolving credit limit that can be used repeatedly. |
| Usually, fixed payment / EMI can be easily calculated using an online EMI calculator. | Payment varies based on how much money you spend on your transactions during a specific billing cycle. |
| Other charges include loan application fees and loan foreclosure fees in case you decide to pay back the loan in full. | Other charges include annual fees, foreign transaction fees, late payment charges, etc. |
| The benefit of instant cash loans is access to cash quickly and the flexibility to pay it back in easy EMIs over some time. | Benefits include accumulation of rewards points, earning cash back on transactions, gaining air miles, etc. |
Final Thought
A credit card would serve you best if you prefer to have revolving credit and seek reward benefits on your transactions. But if your requirement involves repayment of debt over some time, an instant cash loan would be better. Personal loans come with added advantages of immediate access to money on the simple application of a small cash loan on an Aadhar card. Plus, the personal loan application process is flexible and can be adjusted as per your requirements. Ultimately, you alone will be the ideal judge of which of the above options suits you best.
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