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Next month my car registration is due, that is roughly $ 600. I am also in need of a new paid of glasses, they will cost around $ 250 and recently my camera broke (I do photography) and a replacement would be at least $ 1000.

I have applied for an unsecured personal loan via cash first, and was unsuccessful. At this time, the only place that I can get a loan is cash converters. And paying back a $ 2000 loan over 7 months can get kind of tight (I have done it before, repayments are about $ 90 a week).

Recently, a friend of mine applied for a credit card to pay off her car repairs, and she said it was much easier than getting a loan.

So the option of a credit card has come up!

I currently work 5-6 days a week, ranging from 30-45 hours a week. And I earn between $ 450 and $ 700 a week (it fluctuates, but is never lower than $ 400, ever)

Which option would be the best for me?
I’m not too sure about Credit Cards, because I know where they can go wrong. I’m also not clear on how the repayments work and such.

The card I have been recommended is this one;
http://www.aussie.com.au/credit-card/lp/boxing.htm?sourcecode_1=IKVM

Additional information;
I am a car owner, I am 20 years old and I currently rent a house. My weekly expenses are never more than $ 300 p/w.

8 Thoughts on What would be better, credit card, or personal loan?
  1. Reply
    TaylorProud
    July 19, 2011 at 5:32 am

    If you job is secure, go to a local credit union and open a savings account. Then apply for a loan through your credit union.
    You will get a much better interest rate, you can have the payments deducted weekly from your savings account or twice a month however you get paid, and have your check direct deposited or a portion of it direct deposited there, you can also open a checking account there.
    Credit Unions are by far the best value.
    Credit Cards are very expensive, and chances are you will run it up before you know it. some Credit unions have signature loans and
    open end loans where you can apply for more or get up to a certain amount.
    I pay my carpayments weekly and it is so much easier than coming up with a $ 250 car payment I pay 63.98 a week!
    I don’t even miss it that way. I pay direct deposit, I have 1/2 my check go to my savings account and half to checking.
    I can move it at anytime on line if I need to.

  2. Reply
    carl.bennet
    July 19, 2011 at 6:15 am

    Credit union is an option but it will take over a week in the best case scenario, I would go for the card, those personal loans use to have high APR, in addition with a credit card you minimum payment will be smaller you can pay back more to pay it off quick and cut interest charges or take as much time as you need, there is not fixed terms.

  3. Reply
    Marky
    July 19, 2011 at 6:51 am

    My choice would be personal loan.

    The best way to ensure that you would get personal loan is the channel you choose to get the loan. Trying for a personal loan with bad credit in banks is definitely a bad option. All you have to do is try to approach online bad credit personal loan lenders. There are lot of websites that try to market in giving you a personal loan.
    Below website will help you in getting a personal loan.

    http://www.loan-guides.net/personal-loan

  4. Reply
    debtairraid
    July 19, 2011 at 7:01 am

    My grandfather always said there is one place you can always go to get some money…….work. Get an extra job and sell some stuff on eBay. Avoid debt like the plague!

  5. Reply
    Monica Sandler
    July 19, 2011 at 7:29 am

    Credit cards are easier to get, monthly payments are usually lower than with loans, you have a longer grace period, and you don’t get penalized for paying them fast if you can afford. If you live in the US and are a student, try American Express for students. I would also advise to try the bank where you have a checking or savings account, that can work with both national and local banks.

    Another option to consider is to cut expenses or to stretch them over time, so your cash money last longer.

    Good luck!

    Moni.

  6. Reply
    saved_astronaut
    July 19, 2011 at 8:24 am

    i’d had both, & i personally have found that actually having a pre-paid debit card is best, b/c they lessen yer likelihood 2 get in2 debt. u control what u put on the card, & spend what u have. what i found in having a debit, is that u can use it like a cc b/c they have visa/mastercard logos.

  7. Reply
    yahoooo!
    July 19, 2011 at 9:14 am

    My say is, do not even think of borrowing anymore to pay another credit or loan ($ 600), for you will go bankrupt.

    Talk and negotiate with the car company, for the six hundred dollars registration – see if they will allow you to pay on it monthly without interest. If they don’t give it to you, offer a one percent interest on the 600 for a year and pay it for one year. Or if you can pay 50 dollars a month plus the interest, that’s up to you how you will negotiate. If still they don’t have a heart to let you do that, talk to your nearest relative for the money and pay it with interest. BEG. but don’t borrow from the bank because they will put a very high interest on it, before your marrying year is over, you are still be paying the interest. Get me?

    Remember that credit cards are for emergency only. Like if you get sick and can’t work and no job, but need to eat pop corn and water for dinner. Something like that.

  8. Reply
    monkey person
    July 19, 2011 at 9:24 am

    Loan. Stay away from credit cards.

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