Not many people know but, a personal loan can also be availed on the credit card. People who have a credit card on their name can get an instant personal loan through it in case of emergency situations. If you own a credit card, then you should know these 5 important things about a personal loan on credit card:
Instant Transfer of Funds:
Taking a personal loan against credit card is best if you need funds on immediate basis. This is the fastest loan that you can get through the bank. Credit card loans are usually pre-approved so; you don’t have to wait much to get the funds after applying for this type of personal loan.
The loan amount is transferred to your bank account within the time period of 48 to 72 hours. You can hardly borrow money on such short notice through any other method.
No Documentation Required:
A person needs to submit several documents to get any loan. These documents allow the bank to know about you, your creditworthiness and other personal details. The best part about a personal loan on credit card is that you don’t need to submit any documents to avail this service.
This is possible mainly because the bank already has all your essential documents which you have submitted for availing the credit card. So, this loan is totally hassle-free.
As we all know, interest rates applied on your credit card payments are quite high. That’s why many people think twice before opting for credit cards. To your surprise, the interest rates of personal loan against credit card are much lesser than the rates you pay on usual cash withdrawal through your credit card.
This makes the personal loan on credit card even more interesting. People go from one bank to another in the hope of low-interest rates on a personal loan, but credit card solves this problem for you!
Bank Account in the Same Bank is Not Mandatory:
You must be thinking that how can you ask for the personal loan from a bank in which you don’t even have an account? Well, it’s time to let go of this worry as well! Yes, because having a bank account in the same bank of which credit card you are using to avail the personal loan isn’t necessary.
If you have an account in lender bank, then it’s a good thing as transferring funds would be faster in that case. Otherwise, having a credit card of that bank is enough to get the loan.
Applying Online is also possible:
If you don’t have time to visit the bank due to an emergency and need immediate funds, even then you can apply for the personal loan on your credit card. All you have to do is to call your bank or apply online.
The facilities like online banking will help you with this task. The online procedure for this can be completed in less than 5 minutes.