Credit cards have long been a staple in the wallets of many, offering financial flexibility, convenience and ease of transactions. But did you know that credit cards can also be your gateway to quick and accessible personal loans?
Often, people associate credit cards with spending, not borrowing. Hence, a personal loan on a credit card is something that most people either don’t know about or don’t pay attention to.
Now, you can get a pre-approved loan amount to cater to your unexpected financial needs through your credit card. Applying for a traditional personal loan is often lengthy and cumbersome. Instead, you can tap into this pre-approved loan facility on your credit card swiftly and with minimal hassle.
Here’s how you can take a loan on a credit card:
Most credit card providers proactively offer personal loan limits to eligible customers. Log in to your credit card account online or check your mobile app to see if you have a pre-approved loan offer.
Once you've confirmed your eligibility, navigate to your credit card account's "Loan" section. This is where you can initiate the process of obtaining a personal loan.
Depending on your pre-approved limit, you can choose the loan amount that suits your financial needs. Remember, the loan amount might be a subset of your total credit limit.
Take a moment to review the terms and conditions, including the interest rate and repayment schedule. Once you're satisfied, confirm your acceptance of the loan offer.
Once you've accepted the loan offer, the approved amount will be credited either to your linked bank account or directly as credit in your credit card account.
Personal loans on credit cards can be a versatile tool in managing your financial needs. Here are a few ways you can use them wisely:
Credit card personal loans bridge the gap between quick access to funds and responsible financial management. But there are alternative loan products that may suit your situation more.
Fi Money provides instant loans that arrive directly in your savings account. These are pre-approved personal loans made available to select users with good credit scores. On Fi, this process is 100% paperless, and the loans are provided at competitive interest rates — where each user remains in control with complete visibility of all details. Plus, you can avoid EMI late fees by setting up automatic in-app payments. Our licensed partner bank assigns an eligible loan amount to each user (up to ₹5 lakh).
A credit card personal loan is a pre-approved borrowing facility from your credit card issuer. It allows you to borrow a certain amount through your credit card for different purposes, but it typically comes with higher interest rates and quicker access than traditional personal loans.
To apply, log in to your credit card account, go to the "Loan" section, and follow the prompts. Eligibility is based on your credit history, spending patterns, and relationship with the card issuer.
Choosing a credit card personal loan offers speed, convenience, and no need for additional paperwork. It can also be a useful emergency fund. Plus, the pre-approved limit ensures you won't overextend your finances.
Prior to borrowing, understand the interest rate, repayment terms, and any associated fees. Be cautious of higher interest rates compared to traditional loans. Overborrowing and missing payments can lead to debt accumulation.
Repayments are usually monthly and deducted automatically. Missing payments can incur late fees and impact your credit score. Early repayment is often allowed, but check if there's a prepayment penalty.
