Special check or loan? When someone needs money and has access to credit, it is a bit tricky to know what the best option is. For those who have special credit lines and also have pre-approved personal loan with fixed installments – what is the best way? That’s what we’ll see. \ Special Check – On special check you have pre-established credit limit, monthly fixed interest paid once every month of the amount used within the period. Overdraft is a useful financial product if you want to borrow money in the short term or in emergencies.
In this line of credit, you lend money through your checking account up to a certain limit to pay in 30 days, it may be interesting since your bank automatically offers you money without you having to request and go through bureaucracies, moreover in most banks the customer has a few days to use without any interest charges. Average interest rates are between 5.99% and 10.99%.
If you are not careful and fail to pay the amount or interest of the period, you run the risk of being charged on high costs and charges. By using the overdraft continuously the costs are not worth anything.
Personal Loan –
To have a little more peace of mind, lower installments because of the long term and a larger amount than the overdraft, you may want to consider that an unsecured personal loan is better depending on the occasion.
The personal loan that a bank provides to its client, usually are not protected with assets like your home or your automobile, are known as unsecured loans or personal. “They allow you to lend a larger amount than the overdraft.”
In this mode, you will know how much your monthly installments are and the term of the operation immediately. So, you can rest easy knowing how much the personal loan will get out of your checking account every month for the duration of the contract. The interest rate is usually pre-fixed, this way you will not face any unexpected additional costs.
The interest rates for personal loans revolve around 2.99% and 8.49%, however, it can be high if you ask for small amounts with very short terms. However, if you want to anticipate installments, this is possible.
Before hiring the Overdraft or Loan, check the rates, interest, charges, terms and all conditions carefully.