Credit Card, Payday Loan or Overdraft – Which to Choose?

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Credit Card, Payday Loan or Overdraft – Which to Choose?

Sometimes, in life, it might be good to have some extra money if your expenses are not covered by revenue. In such cases, it is best to have an emergency reserve that you can touch, but unfortunately, this is not always possible.

If you need more money than you have at your fingertips, credit institutions will offer you more solutions, but no matter when you resort to it, you will find yourself in a more difficult situation than where you started with a bad decision. If you are thinking about a payday loan, credit card, or overdraft, we will help you to find the best deals for your bank.

Credit card, overdraft or payday loan: what’s the difference?

Credit card, overdraft or personal loan: what

When you use a credit card to make a purchase, you spend money from the bank rather than the amount in your bank account. The amount of the credit line is determined by your bank based on your verified monthly net income, which can usually be three to four times your payment. Each month has a spending and grace period, so you also have to repay the loan amount monthly. You get a credit card alongside a credit account, and you can get more discounts by using it, and if you use the card well, the bank can give you a refund after your purchases, so you can actually make money by buying with a credit card.

An overdraft serves as a “stretch” of your bank account, meaning that once you run out of money in your checking account, you can spend even more on a specific credit. This amount can be spent on anything, without any restrictions. The bank charges the interest on the amount spent. Unlike your credit card, there is no grace period, and the bank charges interest on the outstanding balance daily.

Applying for a payday loan is a lump sum

Applying for a personal loan is a lump sum

Which you can spend most of the time on whatever you want, without having to prove anything to the bank. The requested amount can be as high as $ 10 million, and the maturity is between 12 and 96 months, depending on the amount of credit you have and the monthly installments you can take. At the end of the term, if you need money again, you will always have to apply for a new loan.

Choose what’s important to you and compare them with the best deals currently available on the Good Finance Credit Card Calculator or payday loan Calculator! Find the one that fits you best with our calculator, whether it’s low cost or widespread.

You should know this about the process of applying

You should know this about the process of applying

Credit card

Applying for a credit card is similar to applying for a payday loan, as here you take out a loan and the banks will examine the application accordingly. Your credit line will be determined by your income. To qualify for a credit card, you must meet the following criteria:

  • you must be of legal age,
  • you must have a permanent address in Hungary,
  • you have at least three months’ employment, and you may not be on probation or notice,
  • your monthly certified net income reaches the minimum required by your chosen bank – typically between $ 80 and $ 90,000 – you need to provide a proof of employment from your workplace,
  • you must have a retail bank account for at least three months.

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