Last minute emergencies can end up into fairly large credit card bills. When the outstanding balance on your credit card is very high, making repayments can be difficult. What’s the best thing to do in such a situation? The answer is easy – take a personal loan to repay high-cost credit card bill. It is a simple way to get rid of credit card problems. The more you delay paying high credit card bill, the more damage occurs to your credit score. Taking a personal loan from Standard Chartered Bank is a handy way to deal with this credit card problem and pay affordable interest rates. Read on to know how.
Every credit card holder need to maintain their credit worthiness by making payments on time every time. This is the most important factor in defining creditworthiness. Making less than the minimum payment due may lead to your account being reported as ‘past due’ on your credit report. This will negatively impact your credit score. Hence, it is critical that the entire credit card outstanding minimum due be paid. Since credit cards carry high interest rate, ranging between 30-40% a year, the minimum dues too can be quite substantial. So, the smart thing to do is consolidate your credit card debt and pay it off with a personal loan. Apply now to get exciting offers.
A personal loan is an unsecured loan much like a credit card. Yet, a personal loan comes at a much lower interest rate. Banks like Standard Chartered offer personal loans upto Rs 50 lakh at interest rates starting at 11.50% p.a.. So, in effect you would pay less than one-third in personal loan EMI compared to the huge amount paid as credit card monthly payments. Calculate your personal loan EMI with this calculator.
If you qualify for a personal loan with a low interest rate, it would mean lower payments and lesser hassles. This will start a new virtuous cycle of timely and full payments, boosting your credit history. Separately, a low interest rate on personal loan also means that there will be cash left. Low interest rate means you can save up cash and make partial repayments along the way so that the outstanding loan balance is repaid more quickly.
A credit card despite being an excellent short-term financing source is double-edged sword compared to personal loan. This is because a credit card is an open line of credit. You can keep taking credit card loans until you extinguish the limit. A personal loan, on the other hand, gives you a fixed sum and that’s where it concludes. You can always take a personal loan top-up if you need more cash. For borrowers who lack credit discipline, a credit card can continue to create problems. So, once you have decided to pay off the credit card bill, take the personal loan and never look back.
Lenders like Standard Chartered can even offer you discounts on personal loan processing fee so that transferring the credit card balance to a personal loan is smooth.
There is no point in paying expensive credit card monthly payments once you have racked up a big outstanding balance. The smart thing to do is take a personal loan that repays the entire credit card bill in one-shot and then make pocket-friendly EMIs through the tenure. In this way, you protect your creditworthiness, you save interest cost and accelerate the speed of overall repayment. Talk to a Standard Chartered Bank representative today and get rid of that credit card bill mountain.