Using credit cards and receiving consumer loans is now very widespread. Numerous banks offer various options lending, competing with each other in the amount of interest rates offered. As for clients, they are left to choose between these two options. Anyone who wants to take out a loan from a bank has a reasonable question about which option will be more profitable and better.
Pros and cons of credit cards
When answering the question of what is more profitable - a consumer loan or credit card, it is necessary to identify the disadvantages and advantages of each individual method of obtaining a loan. People can make various purchases using credit cards. This applies to purchasing goods and groceries in supermarkets. They are very convenient to use and as a means of payment when making purchases in various stores on the Internet. In such cases, the credit card serves as an electronic wallet. You can withdraw cash from it, but here comes the first disadvantage of using credit cards - they are charged a certain percentage for withdrawing money. Usually it is 3%. The advantages and disadvantages of the card can be compared in the form of a table:
| Benefits of a credit card | Disadvantages of a credit card |
| 1. Ease of use, which consists in the ability to use it to pay through ATMs and terminals. 2. Mobility, which allows you to quickly carry out various operations using it, without having to wait in long lines at the cash registers. 3. Compactness, which allows you not to carry paper money in your wallet, but to store it cash on the card, placing it in a separate pocket. 4. Fast registration, in which a person will not be required to provide large quantity papers, as usually happens when approving consumer loans. 5. Variability, thanks to which anyone can choose the method of servicing the card that suits them, its limit, and the interest rate on it. 6. Multifunctionality, thanks to which you can use a credit card to make transfers from one card to another, pay for purchases in stores, pay duties, fines and public utilities, transfer money to electronic wallets in various payment systems, make purchases in online stores, withdraw cash. 7. The possibility of obtaining a mini-loan, which provides the opportunity to use a small amount, which will then be easier to return to the bank. 8. Possibility of increasing the credit limit, in which, in case of proper payments and repayment of debts, the client can be provided with an increased amount for use under the loan. |
1. Interest on cash withdrawals, which is quite significant and is established when using all credit cards. 2. The likelihood of problems arising in the event of theft or loss of the card, in which an attacker can use funds from it, for the return of which the bank will have to pay its previous owner. 3. Availability of penalties for late repayment credit card debts, which can negatively affect the customer's solvency and lead to a large amount of debt. 4. Impossibility of use in case of damage and the presence of various defects requiring a quick replacement of the credit card. 5. Small credit limit for first-time owners, which does not allow them to fully take advantage of all the benefits of the card. 6. Quite high interest rates, which are often higher than the rates offered for other types of lending. |
Advantages and disadvantages of consumer loans
It may not always be clear to a bank client which is better - a consumer loan or a credit card. Having studied all the pros and cons of credit cards, it is important for him to become familiar with the advantages and disadvantages of consumer loans. Among the advantages of consumer loans are:
- no need to pay for operations, in which the borrower has the opportunity to spend the money given to him at his own discretion without paying for loan servicing;
- the loan amount is fixed, thanks to which the borrower has an accurate idea of his capabilities in terms of using the money given to him;
- a high degree of protection, in which no attacker can use a consumer loan, unlike money on a credit card;
- the ability to use a large amount compared to the credit card limit;
- reduced interest rate compared to the interest charged when using a credit card.
A consumer loan is supported by the fact that it may have a higher limit than when receiving a card. The amount can reach several million rubles when using a credit card maximum limit is set in the region of 350-600 thousand rubles.
However, a consumer loan has a number of disadvantages, including:
- presence of obstacles to the question early repayment loans that are practiced by the banks themselves, since early repayment of funds on the loan is not profitable for them;
- full payment of interest starting from the very first month, in which the borrower is forced to pay interest on the loan even if he does not use the funds issued to him;
- difficulty in obtaining a loan deferment.
The main disadvantage of consumer loans is that the borrower may not always have accurate and complete information about the interest rate on it. He is not always able to correctly calculate his strength and repay the debt exactly on time, as required by the bank. As a result, debt can increase significantly over time.
On consumer loans there is always a large overpayment of interest, which can also adversely affect the financial situation borrower. In cases where the borrower requires a deferred payment, the bank cannot always make such a concession. In rare situations, the bank may grant a deferment for several months, but no more.
Comparison of two lending methods
A comparison of these lending methods will allow you to finally understand how a consumer loan differs from a credit card. Let's present the comparison results in table form:
| Comparison criterion | Consumer loan | Map |
| 1. Interest rate | Flexibility of rates, which depends on the amount of the loan issued, credit history the borrower, the terms of repayment of the money and the purposes for which they were taken. | High rates, including interest on cash withdrawals. |
| 2. Service procedure | The fee charged depends on the bank to which the borrower applied. | An annual fee for using the card itself. |
| 3. Repayment ahead of schedule | It is unprofitable for banks, so this opportunity is not always provided for borrowers. | Allowed in all cases. |
| 4. Possibility of using money | It is possible to receive both cash and non-cash payments for large purchases such as an apartment or a car. | The predominant form of payment is non-cash funds, since there is a serious interest rate for cash withdrawals. |
| 5. Document requirements | Providing a large package of documents to confirm the borrower’s solvency. | There are no strict requirements for documents; a credit card with a small limit can be issued even without proof of financial independence. |
Advertisements with offers to take out a loan can be seen on almost every post, and tempting and “tasty” banking offers, for example, “Halva,” regularly flash on TV. The population actively uses credit programs, but the product that is truly profitable is not always issued. So, let's find out what is more profitable: a consumer loan or a credit card?
Probably every adult has such a “lifesaver” in his wallet as a credit card. It would seem that there is no money, but with a credit card, you can buy everything you want right now. Very convenient, isn't it? Many Russians have fallen into this trap. They get into debt, which they then pay off with great difficulty. The trouble is that they do not evaluate their real financial opportunities and cannot control costs. And if you use the funds rationally, then the overpayment could be close to zero.
This product has a number of advantages:
- Availability grace period . If the borrower repays the debt during the grace period, the bank will not charge interest. In most cases, the grace period only applies to non-cash transactions. Initially, cards should be used to pay for trade transactions. Our fellow citizens often withdraw cash because they are accustomed to banknotes in their wallets. And this is their main mistake, which is very expensive.
- Withdraw cash or pay for a purchase possible at any time and in any country. The main thing is to choose a card of the appropriate status.
- Money deposited into the account is again available to the client. But with many borrowers this plays a cruel joke. They get so used to using borrowed funds that they simply “live on credit.” Clients have been unable to pay off even small debts for years.
- Security of operations. It's very easy to steal cash. If a credit card is lost or stolen, it can be immediately blocked and fraudulent transactions can be prevented.
- Minimum package for registration. In most cases, it is enough to provide only a passport.
So, we have collected enough “pluses”. But you need to add a fly in the ointment to the ointment.
This product also has disadvantages:
- High price. If the borrower does not take advantage of the grace period, he will need to pay interest. The rate can exceed both 25% and 35%. In addition, the bank charges additional fees: for issuing and servicing “plastic”, withdrawing cash from an ATM, SMS alerts and other services.
- Low limits are set(on average 200-300 thousand rubles), especially for new clients. The bank may also impose restrictions on cash withdrawals.
- There is a possibility of damage to the credit card due to physical defects. In this case, the borrower will have problems conducting transactions.
- Lack of a clear repayment schedule and complex procedures for calculating interest. The monthly payment amount constantly changes depending on the size of the debt. date of payment mandatory contribution specified in the contract. But the payment amount needs to be clarified with the bank or looked at personal account Online.
Consumer loan: pros and cons
To understand whether a loan or a credit card is better, you need to determine the advantages and disadvantages of a consumer loan.
The advantages include:
- Large limit. It is determined taking into account the client’s solvency and can amount to several million.
- To the Borrower a clear repayment schedule is issued, which lists all of its costs.
- There are no various commissions.
- Lower interest rate compared to credit cards. There are offers on the market with rates starting from 12% per annum. But there are few such programs. The average rate on the market exceeds 30% per annum.
Among the shortcomings, I will note three factors:
- Interest accrues from the first day. There is no grace period.
- In most cases To apply for a loan you will need a certificate of income.
- Often When issuing a loan, banks impose unnecessary services on the client. The most common option is life insurance. If the policy is not paid, the interest rate increases by several points.
For the client, insurance is presented as his financial protection. In fact, this is another way for the bank to make a profit. Payment of compensation is carried out in isolated cases. The amount of compensation is equal to the balance of the loan debt and is used to repay it. The client receives nothing.
Comparative characteristics
Let's look at a table in which we compare the main parameters of the two products. This will allow you to make a final conclusion whether a credit card or a cash loan is better.
| Criterion | Cash loan | Map | Interest rate" data-order="Interest rate">Interest rate | The client is offered several options, which depend on the term and amount of the loan. | High rates and additional commissions. But there is an opportunity to take advantage of the grace period. | Issuance procedure | Funds are issued after signing the agreement in cash. | credit funds possible at any time. As long as there is no debt, you do not need to pay anything. The card can be issued “just in case” or the borrower does not know exactly when he will need the money." data-order="You can use credit funds at any time. As long as there is no debt, you do not need to pay anything. The card can be issued “just in case” or the borrower does not know exactly when he will need the money.”>You can use credit funds at any time. As long as there is no debt, you do not need to pay anything. The card can be issued “just in case” or the borrower doesn't know exactly when he will need the money. | Availability | The client receives the money once and then repays the debt monthly. | This type of loan is revolving. After depositing money into the account, it is again available for payments. | Repayment procedure | A clear schedule is issued with the amounts and deadlines for making payments. | The payment is formed monthly and amounts to 5-7% of the debt amount. Compared to a loan, card payments are smaller, but the repayment period is longer. | Decor | Documented proof of income will be required. Once the application is approved, the borrower can receive the money immediately. | And all you need is a passport. If the bank issues personalized cards, you can receive it in 10 days. | Loyalty programs | None | Banks issue co-branded cards and cashback cards. If the client takes part in these programs, he will be able to receive bonuses or compensation for the funds spent. |
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So, we can draw the following conclusion. Both the loan and the card - profitable products. Everyone must decide why they need a loan. If you need cash today, then definitely a consumer loan. But you need to take it for a short period of time. In this case, the overpayment will be minimal.
Borrowers who will use it for non-cash payments should choose a card. And in case the money is needed a little later. But you shouldn’t turn into a shopaholic who buys whatever he likes. It’s very easy to spend money, but you still have to pay off debts. There should be no thoughtless purchases.
Choose a card that suits your social status And financial condition. It is not worth paying a high commission for “gold” and having average income . Premium cards They will only pay off if you have very large sums of money on them and you take advantage of their privileges, such as a personal assistant or access to a VIP lounge at the airport.
You need to choose based on the goals that you have in front of you.
Let's compare General terms on loans and credit cards to choose the best offer.
Pros:
- Grace period. There is a certain time during which you can repay the debt without interest.
- Convenience. Using a card is more convenient than cash.
- Renewable limit. When you top up your card (pay off your debt), part of the money is returned to your account and can be used again.
- Only part of the money can be used. If you take out 10,000 and withdraw only 2,000, you will only have to pay interest on 2,000.
- Remoteness. Sometimes you don’t need to visit a bank branch to get a card. The request is submitted via the Internet, submitted Required documents, and the card will be delivered by courier.
Minuses:
- High interest. The difference can be almost 3 times.
- Arrangement fee. Cards charge annual fees.
- Small amount. The amount of money on the card is lower than with a consumer loan.
- Risk of spending on interest. If you constantly use the card and do not return the money on time, you can spend a lot on interest or fines.
- Cash withdrawal fee. Cards charge a small percentage for using credit funds. There are cards with free cash withdrawals, but then they have a high annual maintenance cost.
Loans
Cash loan
There are 3 conditions on which the loan is based:
- Payment.
- Urgency.
- Returnability.
You can apply for the specific amount you need and receive it in banks in cash or to your account. You can spend it on whatever you decide.
Cash loan at Alfa-Bank
Product Information:
- Loan amount: up to 5,000,000 rubles
- Loan term: up to 7 years
- Rate: from 9.9% per annum
Requirement for the borrower:
- Age from 21 years
- Russian citizenship
- Constant income from 10,000 rubles after taxes
- Continuous seniority from 6 months (from 3 months for corporate and payroll clients)
- Permanent registration in the region where Alfa-Bank is located
Methods of obtaining:
- At a bank branch
Repayment methods:
- At Alfa-Bank ATMs
- In the Internet bank "Alfa-Click"
- IN mobile banking Alfa Mobile
- Through the accounting department at the client's work
- In terminals and ATMs of Moscow credit bank and the Ural Bank for Reconstruction and Development
- From partners (depending on the city)
Tinkoff credit card
Product Information:
- Credit limit: up to 300,000 rubles
- Interest-free period: up to 55 days
- Monthly payment: up to 8%
- Rate: from 19.9% per annum
- 120 days without interest are provided only when transferring the balance from another credit card, that is, when the client transfers to the bank from another bank. Tinkoff Bank thus making it possible to repay the debt of another bank.
Requirement for the borrower:
- Russian citizenship
- Age 18–70 years
Repayment methods:
- Bank card
- Cash from partners
- Bank transaction
Methods of obtaining:
- Courier delivery
Cash loan
Product Information:
- Credit limit: up to 2,000,000 rubles
- Loan term: from 3 to 60 months
- Rate: from 12% per annum
Requirement for the borrower:
- Russian citizenship
- Age 18–70 years
- Availability of permanent or temporary registration on the territory of the Russian Federation
Repayment methods:
- Bank card
- Cash from partners
- Bank transaction
Methods of obtaining:
- Courier delivery
Conclusion
Don't forget that banks often hold promotions during which interest rates may be below the minimum, and other conditions make a certain type of loan more profitable (such promotions are often held at the beginning of seasons or on holidays).
Both cards and loans have a number of advantages and disadvantages. You should familiarize yourself with them to make the right decision. The choice depends on the purpose of the loan.
Banks are vying to offer credit programs and compete on interest rates. In fact, the easiest way for a client to get the desired amount is in two ways: by applying for a credit card or by taking out a consumer loan. For the consumer, each of these options has pros and cons, let's figure out what's what.
For a while the question is what more profitable loan or a credit card, people responded by choosing a loan. It took time to get used to the plastic and its features, to make sure that the e-wallet was not a scam.
Today, it is not uncommon for a person to have a couple of credit cards from different banks with different conditions.
Common types of loans
All consumer loans are conventionally divided into two types: non-targeted (the client is limited by the amount of the loan, but otherwise he is free to dispose of the money at his own discretion) and targeted (exclusively for payment for a specific product or service, everything is strictly controlled by the lender and you can get problems for fraud).
There are many more varieties and types of credit cards. Main differences:
- firstly, in payment system(VISA, Master Card, American Express, etc.), you can pay with a certain card only in those places where there is a terminal;
- in the category: the simplest, in which there is no need to pay for service, then there are cards like Classic and for VIP clients. The main differences include the authorization method, the level of service and the amount of the annual fee for using plastic;
- according to the lending scheme. Overdraft card - when every month you need to fully repay the amount of debt, and the owners of the revolving card need to repay only part of the spent credit limit.
To decide which is better: a loan or a credit card, you need to carry out comparative analysis even before visiting the bank. This can be done as easily as possible if you have access to the Internet. You can find all the current offers on the websites of most major banks.
Useful material :
First of all, it is important to take into account the personal preferences and financial capabilities of the client himself.
The proposal must be evaluated according to the following criteria.
Thus, we can highlight a number of advantages of a credit card:
- At any time and in just a couple of hours. Today you don’t even need to go to the bank, you can apply for a card online and receive the plastic card by mail in a few days. This is useful if you need money urgently;
- Availability of a grace period. Almost all cards have them; for 30-55 days you don’t have to pay interest on using the money. Again, for people who often need small amounts and pay them back on time, this is a super advantageous offer;
- Minimum documents and paperwork;
- Availability of ATMs throughout the city;
- You can pay for purchases without having to cash out.
Among the disadvantages they note: difficulties in calculating the grace period, the need to constantly monitor your balance, and also the purely psychological factor of spending money without thinking. When you don’t feel the bills in your hands, it seems like there are a lot more on your account, although this is not the case. You should treat a credit card like a regular wallet and not exceed the limit.
Thus, we can say that for frequent purchases on a small amount responsible people with stable wages A credit card is more suitable. And if you are throughout long term are a bank client, the credit limit will be set on average as 3 of your wages. If you use the card correctly, the interest is not scary.
When figuring out whether a credit card or a cash loan is better, it is important to consider the amount of the purchase. A credit card will be more useful if the price of the product is small and there is simply no installment plan available for purchasing it.
If the borrower can make payments without violating the deadlines monthly payments, then the terms of consumer credit will not be a big problem. Wherein Special attention It will be necessary to pay attention to fines and late payments, otherwise the amount of overpayment will be increased.
To receive a loan you need to collect minimum package documents consisting of passport data, TIN, income certificate. Sometimes the latter is not required, but in this case, get ready for a reduced loan amount and increased interest.
For most loans, you do not need to look for guarantors and co-borrowers, so you can get it in just a couple of hours, just like a credit card.
The disadvantages of loans include:
- you will have to overpay interest, and the longer the terms, the greater the overpayment;
- sometimes the actual interest rate may be increased due to hidden fees, commissions and insurance. This needs to be clarified immediately;
- If you plan to buy a car, for example, then it’s better to take out a car loan, with intended use funds;
- supposedly availability. A person first acquires an item, and needs to pay later, creating a false impression of an abundance of money. If you don’t take your debts seriously, you’ll have to deal with debt collectors.
More about the map
- Duration up to 5 years;
- Loan up to 1,000,000 rubles;
- Interest rate from 11.99%.
| Credit from Tinkoff Bank | Apply for a loan |
More about the map
- According to the passport, without certificates;
- Loan up to 15,000,000 rubles;
- Interest rate from 9.99%.
| Credit from Eastern Bank | Apply for a loan |
More about the map
- Duration up to 20 years;
- Loan up to 15,000,000 rubles;
- Interest rate from 12%.
| Loan from Raiffeisenbank | Apply for a loan |
More about the map
- Duration up to 10 years;
- Loan up to 15,000,000 rubles;
- Interest rate from 13%.
| Loan from UBRD Bank | Apply for a loan |
More about the map
- The solution is instant;
- Loan up to 200,000 rubles only with a passport;
- Interest rate from 11%.
 | Loan from Home Credit Bank. | Apply for a loan |
More about the map
- Duration up to 4 years;
- Loan up to 850,000 rubles;
- Interest rate from 11.9%.
 | Loan from Sovcombank. |