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Person cutting up their credit cards once and for all in favor of personal loans

Everybody's been there.

Something comes up — whether it's as simple as groceries for the family or as complicated as home or auto repairs — and you need money to pay for it ASAP.

But without the money ready to spend in your wallet or bank account, you might decide to get the money another way. The two likeliest options most people in the Corpus Christi area go for are either credit cards or personal loans.

So, which one is the better choice for you and your family? Let's compare.

Debt Issues

A credit card gives you something called "revolving debt." You continuously rack up more debt, pay it off, incur more debt, pay that off, ad nauseam. And very often, that debt comes with a crazy-high and sometimes variable interest rate.

With a personal loan, on the other hand, you have a fixed debt thanks to a set interest rate. Based on the amount of money you received in the beginning, you'll know exactly what you have to pay off until the repayment is fulfilled.

Spending Issues

You simply can't overspend with a personal loan. A personal loan allows you to borrow a set amount that covers exactly what you need, end of story.

But with a credit card, you might be tempted to push up to or beyond your credit limit — and further into debt.

That means a personal loan is far easier to budget for on a monthly basis than a credit card, and paying the minimum payment won't affect your credit score.

Credit Issues

When considering what's better, between credit cards or personal loans, you also want to think about the impact of a personal loan vs. a credit card on your credit score. If you do have bad credit, you may never qualify for a credit card in the first place. Or, if you do, your monthly credit limit might be painfully low while your interest rates are exorbitantly high.

Personal loans from Atlas Credit, however, don't depend on your credit score. Even if you have bad credit, you can qualify for a loan of up to $1,300 from Atlas Credit and pay it off in five to 12 months. You also can improve your credit by making consistent monthly payments on the personal loan. When your credit score rises, you can qualify to borrow larger amounts of money in the future. You may get approved for a vehicle loan or a mortgage, making personal loans more desirable for their long-term impact.

Financing Bigger Purchases

When you consider a loan or credit card and which is better, you also should think about what you want to purchase with your money. If you need to buy a few small items at different stores, then it makes sense to use a credit card vs. a personal loan. But when you want to get a bigger-ticket item, such as a hot tub or a cutting-edge gaming console, then you should choose a personal loan vs. a credit card that will rack up debt.

You can pay for your large purchase using a personal loan taken out for this purpose. You will receive a more favorable interest rate than on a credit card, meaning you will pay less in the long run for the item.

Access to Cash

You can get cash from your credit card, but that comes with a sky-high interest rate. If you need cash quickly, you are much better off getting a personal loan. At Atlas Credit, sometimes you can even get your money on the same day you apply for the loan.

If you live in the Corpus Christi area or anywhere else in Texas and need some quick and easy cash now, apply online or at your nearby Atlas Credit location for a personal loan. We have locations throughout the state and in Oklahoma, too. We can get you situated with a great personal loan to help you get back on track — and you can forget all about adding another piece of plastic to your wallet.

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