Personal Loan Alternatives - Credit Cards

Dependant upon your personal circumstances and/or specific requirements, a personal loan may not always be the most suitable form of borrowing and/or solution to your situation. This guide provides our visitors with a little information on one of the most common alternatives to personal loan borrowing...Credit Cards.

About Credit Cards
Credit cards are a massively popular form of borrowing for a number of reasons, primarily however consumers are drawn to the fact that, unlike a personal loan, the funds can be acquired and spent as and when the borrower so desires. There are approximately 60 different issuers of credit cards within the UK, offering more than 400 varieties of cards between them.

Credit Card features
There are a number of unique features associated to credit card products, which often act as the major selling point for each individual brand. Typical examples of the most common features include: -

• 0% Balance Transfers
• 0% Purchases
• Cash Back features
• Loyalty based reward schemes
• Interest free purchase periods

This list is by no means exhaustive but it is typical of some of the more popular benefit related searches. Other less tangible benefits, yet major selling points never the less can be rooted to the actual design and presentation of the card. Vast numbers of card applicants will only consider a prospective card, on the proviso that it is themed around a particular colour scheme or logo associated to a specific football or other sporting team. Although there are rarely any actual financial benefits to be gained from these types of card, the borrower is often issued with a team related gift as a result of their application.

There are also other types of cards, which are themed around specific charitable institutions and organisations. Again, although there are rarely any additional financial benefits to be had from using these types of card, borrowers are often enticed by the fact that a certain percentage of what is spent on the card will be donated to the organisation featured, by the issuer.

The Advantages and Disadvantages of Credit Card borrowing
There are a number of advantages and disadvantages present when comparing the unique features of a credit card against that of a personal loan. The ability to borrow as when you see fit is almost certainly one of the major plus points that credit cards offer, however, if the borrower has a good history of credit, they are far more likely to get a better rate of interest with a personal loan. It is also extremely easy for individuals who take a haphazard approach to their finances, to borrow far more than they are able to comfortably manage, in a short space of time. Recent statistics suggest that almost 70% of indebted Brits owe the bulk of their debt, to their credit card provider(s). However, on the other side of the coin, credit cards present an ideal medium for sensible borrowers to build and/or establish a positive history of credit.

The long and short of it is that as with any other form of borrowing, dependant upon your approach to their use, credit cards can either be extremely advantageous or if managed incorrectly, they can be extremely detrimental. If your intention for borrowing is to purchase a specific item, pay off a debt or even go on holiday, odds are that a personal loan would be most suitable, for the simple reason that it will be cheaper. However, if you require the funds for use over a drawn out period of time, or if you just want them to be available for as and when you see fit, a credit card is likely to be your best option.

How can I find the most suitable card?
By far and away, the easiest and most convenient way to source a credit card in the first instance is by going online. We would suggest using one of the many financial comparison sites as your starting point. In most cases, these sites will provide a simplistic table listing all of the cards that are currently available within the UK, and will often break the cards down into specific feature related sections for ease of comparison.

Once you have found a card that you feel would be suitable, before you apply, it may be also worth performing a further search for an impartial review of the card. This type of research can be particularly useful as you will be able to ascertain as to how other users have found the product to be, but maybe more importantly, you will also be able to gage as to how users have found the actual provider of the card to be. If you are interested in reading some impartial reviews, on a vast range of credit cards, click on the following link: -
The Review Centre.