When you need money, it is common to have doubts about cheap credit, since all credit operations have interest rates. While the credit card has the highest interest rate in the world, the personal payday loan has interest rates that vary according to the profile of the applicant and the contracted term.
Even so, those who do not give up the economy must stay within the rates charged.
Interest rate: credit card x personal payday loan
The year 2018 began with a fall in personal payday loan interest, according to a survey released by financial experts.
Rates were collected on 08/01/18 of the main banks, considering a personal payday loan installment in 12 times. The average rate of the banks surveyed was 6.32% per month.
At the end of 2017, the XBC Bank announced that interest on the revolving credit fell to a lower level in two years, with an average rate of 363% per year.
Next, compare the interest rate of the credit card and personal payday loan, using the amounts reported by financial experts and XBC Bank:
|Revolving credit interest rate||personal payday loan interest rate|
|13.62% (average)||6.32 am (average)|
|363% pa (average)||108.63% pa (average)|
In the table above, the values reported in the surveys are not fixed values, but an average of the interest rate in the credit card (revolving credit) and personal payday loan modalities.
And, even with the fall in credit card interest, it is perceived that the personal payday loan interest rate is more advantageous.
Credit card: other fees
When comparing credit card and personal payday loan, it is important to consider the other fees that will be charged in addition to the interest rate.
In the case of credit card, the annuity can weigh in the pocket. The annuity fee is charged in installments on the credit card and for this reason may go unnoticed.
The amount of the annuity may exceed R $ 1 thousand, as in the case of the Santander Smiles Infinite credit card, with an annuity of R $ 1,092.00 (January / 18).
Other credit card fees that must be taken into account:
- Card issuance second rate: for cases of loss or theft;
- Serving rate (money): one of the highest rates of credit card services;
- Account payment rate: paying the bills with the credit card is charged;
- Credit Limit Rating Fee: The limit increase request does not go away for free and still runs the risk of being denied.
Credit card or personal payday loan: what is easier to get?
Whoever is considering a credit card needs to present the minimum income required by the banks. Credit cards have different benefits and annuities, which vary according to the consumer profile. The higher the income, the greater the chance of finding advantages in a credit card.
In personal payday loan, the profile is evaluated individually, which can facilitate your request. In addition, the personal payday loan has previously agreed fixed installments, while the credit card limit can be used in a single time, increasing the risk of default.