Know how you can get a loan against a credit card, its advantages, and features. Currently, credit cards are utilized right from buying flying tickets to paying the bill. And if you’re a global credit card, chances that you’ll swipe it on that global vacation. While these features are so amazing, on an additional feature that the credit card provider is the capability to avail of a loan. These loans are over your allotted limit of credit and are the same as the loan you might apply via a bank.
Features of a loan on credit card
Every bank will have a unique set of the feature when it comes to offering you credit card loan. Though, these features are pretty common to all of them.
- Since a loan against card is preapproved feature, you don’t have to apply any application
- The bank normally has an EMI plan, which is fine, you do not have to worry about paying a something lump sum. In its place, you can focus on monthly installments.
- Sometimes you can get a loan from the bank utilizing one more bank’s card by moving the outstanding balance to one card, and then pay the EMI. This technique is called balance transfer.
Advantages of a Loan Against a credit card
- One of the largest benefits of a loan against a card is that these loans are preapproved. This means that you can get the loan without any application, and the money will automatically be credited to your account!
- Credit card loan, you now have the benefit of making costly purchases via EMIs (equated monthly installments)
- You’re given the choice of transforming the balance of outstanding from one card to a single card and pay the complete money in EMIs.
- Simpler to get a credit card loan as their preapproved loans.
Am I eligible for a credit card loan?
Though the credit card loan is preapproved, you have to meet the following criteria
- You need to pay credit bills on time
- You need a holder of the credit card. If you’re not, you can’t apply for a loan
- You need to have regular revenue, higher the revenue, greater the chance of getting a preapproved loan against your card.
- Your need either an existing client or a new client of a bank. Though, few banks just give a preapproved loan to existing clients. You need to hold a bank account for a given term before you’re eligible to get a loan against a credit card.