How do credit cards work as an alternative to a short-term loan?
If you take out a credit card as an alternative to a short-term loan, you’ll be able to cover your short term loan borrowing requirements by paying for things with the credit card rather than a loan.
With a credit card, you can choose to pay off your balance in full, or spread the cost of borrowing over a longer term. As long as you are making the minimum monthly payment you can pay off your balance in several smaller repayments, or in a larger lump sum repayment. It should be remembered however that spreading the cost of borrowing over a longer term will result in higher interest payments overall and you should always try and pay more than your minimum payments where possible.
Choosing the right short-term borrowing solution for you
At 118 118 Money, we make borrowing money a simple and transparent process. We take a sensible approach to lending and will never offer you a product for more than you can afford to repay.
We look at more than your credit score and understand that unexpected expenses happen – this is why we are as flexible as possible around your specific financial needs. If you are worried about your credit score, you can try our eligibility check. This means you will know your likelihood of acceptance before you apply for a credit card with us, and it won’t impact your credit score.
Our credit cards have no upfront or hidden fees guaranteed and our online application form on your mobile phone, tablet, or laptop is very straightforward. Our eligibility check also lets you know what guaranteed credit limit we’ll offer you before you apply.
Should I consider a credit card as an alternative to a short term loan?
Before you make a loan application, you could consider a credit card instead. Credit cards as an alternative to a short term loan can be used to cover unexpected emergencies such as a car repair bill or for unexpected bills which could leave you short on money to pay for other necessary bills or costs.