Student Loans vs Credit Cards
by admin on 28/07/09 at 4:57 pm
If you are in college and are in sudden need of cash, there are two options available to you. One is the personal loan and the second is the credit card. You can get a personal loan either from federal or private parties. The biggest difference between using credit cards and loans when you are in college is the interest that needs to be paid. In the case of a loan, you can start paying the interest after graduation, but in the case of credit cards, you will have to start repaying after the grace period of 60 days and banks charge the normal rate of interest like any other credit cards. So it will not be a very wise decision to use a credit card when you are in college.
Even if you take a credit card when you are in college, use it wisely and start building a good credit history. During college days, it is advisable to use the credit card when you have cash. The advantage of it is that you can make the payment within the grace period. If you follow this method, you can build up an excellent credit score. Actually, both credit cards and loans have advantages and one must know how to balance between the two.
