Travelling can be a fun time for some and a routine activity for others. Those who are not frequent travellers want some time off their work to witness spectacular sights around the world. Such a sightseeing experience can rejuvenate their mind and body that would possibly be jaded with hectic work life. Those travelling frequently would take it as a normal affair. In both situations, you need to spend to be able to travel. If your monetary resources are such that you can travel on your own without having to apply for credit, you just need to figure out the time when you are free to do so. In case you don’t have, you can use any of personal loan or credit card to travel around. The question of which is better of the two would depend on a variety of factors such as your travel expenses and the frequency at which you roam around.
Travel Expenses You need to first calculate the expenses that are needed to be made to travel around. The expenses would incur on booking flights & hotels besides the amount you need to spend to visit the sights around the world. The amount would help you decide as to which of the personal loan or credit card would be better. Income After summing up the travel expenses, you need to see the size of your wallet. Both personal loans and credit cards are lending products that need timely repayment for healthy credit history. However, there’s a slight difference between the two. The difference is that credit cards don’t become debt if you pay off the amount due on or before the due date. Only when you pay partially or after the due date does the interest get charged. While the interest rate on a personal loan can be anywhere between 11%-25% per annum, the interest on revolving credit card dues can be 2.5%-3.5% per month. If you require a lot of money to fulfill your travel wish, you may struggle to pay off the entire due on or before the due date. In such a case, a personal loan can be better by allowing you to pay the EMIs, abbreviated form of Equated Monthly Installments, at lower rates of interest. A big travel amount can be easily met and paid via a personal loan. However, those travelling frequently would rather have to apply for a travel credit card offering them tons of reward points on their spends. The rewards you earn can be redeemed to book travel tickets and hence save your money. You can even grab discounts on staying at select hotels while also enjoying the luxuries of lounges. Students can apply for a credit card that can help reserve their seats in trains. Particularly those having to run around different venues to attend the competitive examination would find such credit cards extremely helpful. Where Should You Apply for a Personal Loan or Credit Card? While choosing a personal loan, you must compare the interest rates, loan amount and processing to be charged by different lenders. Choose a lender that can offer maximum loan at lower rates and less processing fee to make it a low-cost affair for you. When it comes to credit cards, you should compare the best travel cards around and see which has maximum offers. The card with maximum rewards, cashback, discounts would be the one where you should keep your eyes on.
0 Comments
Leave a Reply. |
Details
Anika Sharma
|