Getting a loan without a paycheck can be easier than you think, especially if you need small amounts to meet specific needs. Credit card financing can be obtained quite easily to purchase goods or services and to obtain liquidity.
There are two loan formulas by credit card: the classic balance credit card and the revolving card. Let’s see them together in detail.
Credit card balance: how it works and how to get it
This is the classic credit card, the so-called “balance card”; generally linked to a current account on which salaries, pensions or any other income are regularly credited in order to guarantee a sufficient deposit of money that can cover the credit limit granted.
The credit card on balance is in fact a sort of very short-term credit (max 45 days) because the sum of all purchases made during the month is usually charged on the 15th of the following month, without additional costs. We can therefore speak of a credit card loan. Obviously, the purchased goods are delivered immediately.
The revolving credit card
The revolving card represents a real form of credit card financing since it grants a financial availability even in the absence of capital deposited on the current account, with repayment in installments. If the card is used for shopping, the amount available decreases and the amount to be returned is paid in installments for the period agreed at the time of signing the contract.
The money returned through the monthly installments therefore replenishes the financed capital that can be reused. The main difference between a personal loan and a revolving credit card lies precisely in the fact that the amount is not disbursed all at once and that once reinstated it can be reused, and there is no need to make a loan request to every use.
Obviously, the facilitation of being able to pay in installments the sum that is lent also involves the payment of interest, usually very high, with a total of overall costs decidedly higher than those applied to other forms of financing. It is advisable to carefully consult the information sheets and view the final APR, in order to avoid nasty surprises.
It should also be added that failure to pay the due installments entails reporting as a “bad payer” in the various risk centers.
Loaning with revolving credit cards is therefore useful when you have to face sudden expenses to be repaid over short periods; numerous are the products offered by the various banks and financial companies, such as the Agree Bank Active Card in agreement with Euronics which relies on the Visa circuit or the Fine Bank Card which, on the other hand, uses the Mastercard circuit.