Do you think is better to use credit cards or loans?
Show your support
Adding to this, you’ll likely pay more in interest on a loan, since you can’t pay it off every month in order to prevent that interest
Credit cards for sure because a loan is a fixed amount and once you’re given the loan you will grow interest on the agreed amount. With credit cards as long as you pay it back at the end of the month you’re not charged interest. You can also control the spending much more with credit cards because you can use what you need rather than borrowing a lump sum. Yes the credit card may have a £500 limit but you can use £20 and not pay interest whereas a loan of £500 immediately starts accruing interest on it even if you only need to use £100
But really you shouldn’t be using credit because your money doesn’t stretch because that will end you in financial trouble in the long run and credit card companies will expect a minimum payment each month in accordance with your spending. If the money doesn’t stretch far enough now, it will stretch a lot less the more credit you use because your debt will increase and companies will expect higher monthly repayments. Short term, it can really be beneficial don’t get me wrong, but either way just be careful because I’ve seen friends and family go down the slippery slope of credit
Credit cards for sure and if you use your credit card well (keeping balance under 10%) you can request to increase the credit line amount every few months. Sometimes they increase automatically. Having a credit card also means you should always be able to pay off the balance by the next due date. It shouldn’t be a clutch.
Having used both, that loan pay back felt never ending. So I would recommend credit cards as someone else mentioned, you get cash back and rewards so it helps but of course just manage your usage
Whichever has lower interest rates and fees. Some credit cards will have a rewards program. Try to pay off the credit card every month to minimize the interest you pay otherwise the interest alone (whether loans or credit cards) will make your financial situation even worse.