When most people need to make a big purchase, they might consider opening up a new credit card to help finance it instead of taking out a personal loan. However, there are many reasons why you should choose the latter instead of the former, especially when you’re borrowing money on something long-term like a car or house. Here are three of them.

A Bigger Loan Amount

A personal loan is based on your own credit, so you have more freedom to choose exactly how much money you get. This is especially important if you’re looking for a big loan amount: While most credit cards cap at around $10,000 in total available credit and can require significant deposits, some personal loans can go up to $100,000. Plus, there are no annual fees or interest rates attached to personal loans that make them even more affordable than credit cards. If you want to take out a large loan but don’t want to pay a lot of interest, then it might be worth considering getting a personal loan instead of using your credit card.

Personal Loans have Longer Terms

One of the biggest concerns with credit cards is that they have short repayment terms. The average length of time between when you open an account and when you start making your minimum payments is six months, but some people wait more than five years before they pay off their card. That’s because they are only required to make their minimum payment each month, which often isn’t enough to cover all of your balance. By using a personal loan for bad credit, you can take as long as 10 or 15 years to pay off your debt – reducing interest payments over time. Plus, personal loans typically have lower interest rates than credit cards (making them more cost-effective) and come with flexible repayment terms so that you aren’t paying down debt for decades on end!

Lower Interest Rates for Personal Loans

One of the most compelling reasons to take out a personal loan is that your interest rate will likely be lower than what you’ll pay on a credit card. The average interest rate for an unsecured credit card is 16%, according to Bloomberg Businessweek. If you have bad credit, it can climb even higher. A personal loan could give you some much-needed breathing room in terms of your payment and save you money on interest over time.

Get Started With Mark Credit Loans

Mark Credit Loans has helped hundreds of people with bad credit repair their credit and get loans with low interest rates and flexible terms. Apply for your personal loan here! If you’re looking to finance a major purchase, such as purchasing or renovating a home, paying off high-interest debt, or taking care of other expenses, then a personal loan may be just what you need. If you have bad credit, however, it can be difficult to find an affordable lender that will give you an option to pay back your loan over time.

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