POS lending or credit card?
Having decided to purchase household appliances or other expensive goods, the borrower is faced with the problem of choice.
Which loan to give preference? Use a credit card or the services of bank managers directly in the store?
Benefits of POS Loans
POS-lending is a targeted loan, carried out directly at the point of sale. Collateral for it is the purchased goods. The positive aspects of such loans include:
speed of receipt – a loan is issued instantly at a point of sale;
simplicity of execution – there is no need to collect a large package of documents, confirm solvency;
lack of guarantors and “significant” collateral. The thing that is acquired is not psychologically perceived as a guarantee;
low interest rate in comparison with microloans and express loans.
Credit Card Benefits
A credit card is a universal tool that allows you to use borrowed funds at your discretion. All options are available to the borrower – settlement at retail outlets, cash withdrawals, expenses in the virtual world. Their main advantages:
the interest rate is in the average range compared to other loans. It is much lower than that of express loans, and slightly higher than target loans, in addition, for example, it can provide with a profitable cache;
A simple receipt procedure for persons participating in corporate projects, for all others it can take from one to five days. The time for approval of the application usually does not exceed one hour;
interest-free period, which allows you to significantly save on paying a loan.
Considering the positive aspects of these types of loans, it seems that they are absolutely identical. Perhaps there are some nuances associated with the interest rate, but they are insignificant, because you can always choose the suitable option. But it only seems. To objectively evaluate the capabilities of both programs, you should know their pitfalls.
Credit cards allow you to buy goods in stores and online, POS-s only at a point of sale.
Credit cards have a grace period, but also annual service, and there is usually a commission for withdrawing cash. POS loan should include all payments in the payment schedule. What is better is shown only by careful calculation under specific conditions.
Arriving at the store with a card, you are already clearly aware that these are borrowed funds, while a “local” loan is most often spontaneous, unplanned and may not be affordable.