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What Suits You The Best? A Credit Card, a Personal Loan or Simply an Overdraft?

Choosing the right one definitely depends on your financial needs and objectives, but it could be a tedious job with too many options that are available in the financial market. While we head towards making the right choice, what we need to check is the borrowing method of each product and the purpose for which it could be best utilized.

Let us look deep into the features of each product and the ways they could be beneficial to us.


A credit card is your personal card; it is handy and can be utilized at the very next moment after you realize the need for using it. Although it comes with some annual fees which have to be taken into consideration, it rewards you with points that can be utilized for the subsequent purchases you make, through credit cards. With most of the cards that come with a benefit of 55 days interest-free period, no interest is charged on the purchases if you happen to repay the entire credit amount within the due date of each month and just in case you don’t, due to lack of cash flow you may be penalized with heavy interest rates plus an additional fees for withdrawing the money beyond a limit, which in turn would affect your credit score and your chances of getting a bank loan approved!


Talking about the credit score, would it be easy to get a bank loan with a low score? NO! But it’s the easiest to get an overdraft even if you have the lowest of scores since it allows you to borrow an amount irrespective of your bank balance! You can get an overdraft against your insurance policies, fixed deposits, shares, bonds, properties, and even against your salary, up to three times the monthly payment, although overdraft against your salary would come with a certain minimum and maximum limits and the period for the same differs from bank to bank. Taking overdraft against salary is very efficient because it’s fast with less paperwork and bears attractive rates and any overdraft for that matter is useful because it does not carry any pre-closure charges and lets you pay interest for the period and the actual amount you have used. Before providing an overdraft the lending banks take into consideration your eligibility, creditworthiness along with the collateral you are ready to provide and the fact that you could bear high costs if you slip of the rules that have to be taken care of, after availing this facility cannot be denied!


A personal loan is taken to meet your personal needs. It is an unsecured type of loan and is borrowed for a short term, which means it has to be repaid after a period that ranges from 6 – 12 months. Banks approve the loan amount after evaluating your income, employment history and your ability to repay the loan, and the minimum criterion for the same is a credit score of 750. A personal loan once approved is payable on a monthly basis for an agreed tenure and may attract charges if you repay the loan amount before this tenure ends. Therefore to know the monthly payment (EMI) one can use the EMI calculators available on the internet with various trusted sources. After knowing the EMI payable, one also has to understand the processing fees and few monthly charges that have to be paid every month along with the EMI.


To sum up a conclusion whether it’s more feasible to take a personal loan, a credit card or an overdraft facility depends on the following factors:-

1) Accessibility of these financial products

2) Availability of credit out of these products that should meet your financial needs, entirely!

3) Affordability in terms of interest fee and the entire cost that has to be borne in order to enjoy any of these products.

All the calculations to get the best product have to be performed by you for optimum benefit and least cost, depending on your situations. Regular payments will give a timely check on your credit score.

Learn about the CASHe Instant Loan App!

This App is a medium that helps the millennial group to get an instant loan in the form of salary advances without getting into their credit history, unlike traditional overdraft facilities. It’s an easy cash facility and the best alternative to a personal or any kind of loan. To know more about the CASHe app, click here and get relieved of all your notions regarding the credit facilities.

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