MS. OTTS

Lifestyle Mommy Blog

A Blog about the ins and outs of my crazy beautiful life. Grab a glass of vino or a cup of coffee and enjoy the ride! 

Money Facts: What You Need To Know About Loans & Credit Cards

Loans and credit cards can be tricky little things, but there are definitely great perks about them and some companies, like one I will talk about below, offer straight-forward loaning processes, which is definitely the ones you should go for.

There is a lot of diversity when it comes to credit cards and loans - you either love them, or you hate them. Some people pay all of their expenses on a credit card and pay it off every month, some never use a credit card, and others have student loans, or credit card debt for days. It really is a personal choice and opinion and everyone is different.

So, today, I want to dive deep into a few common questions that I hear about credit cards and loans:

How does a credit card work?

Forbes says, “When you choose to pay with a credit card and you hand the card to a cashier or submit your card number over a secure internet connection, the merchant you’re dealing with validates your account and whether the bank will allow the purchase to go through. If everything looks good, your purchase is added to your credit account. Many companies are involved with each swipe of a credit card, and money exchanges hands between all these companies each time a card is used. Merchants pay fees to accept credit cards, and eventually, the card-issuing banks receive part of this as revenue.

Once a month, the bank accumulates your credit card purchases and sends you a bill. The best option, and the only option I recommend, for dealing with that bill is to pay in full by the due date. If not, you have to pay a minimum amount, determined by the bank, to avoid extra fees.

Even if you avoid extra fees, an interest fee will be added to what you owe the following month. Interest adds up quickly and could make a $100 purchase cost $200 in total or more rather quickly. When this happens, it’s more than just time-shifting; it’s as if waiting to watch your 30-minute recorded show would require 60 minutes of your life.

When you pay on time and in full, the bank considers you a well-behaved customer, and will report this behavior to other companies that evaluate whether you’re a good borrower. You want these companies to consider you a good borrower, because it could have financial consequences in the future.

Banks, in their roles as credit card issuers, don’t want all users to be well-behaved customers. The companies profit from these customers, but the most profitable customers are those who don’t pay bills in full but are rarely late. Because of all this profit, some taken from merchants, stores often have no choice but to raise prices for everyone as a result of the increased popularity of credit cards.”

How does a loan work?

Just like with a credit card, there is an application process that usually takes place with loans. In fact, some loans are very hard to get, but others (more on this in a minute), make it very simple and straightforward. Once you go through the approval process, you get your money, but you have to repay it within an agreed timeframe. Most loans, just like credit cards, also have interest tacked on.

What kind of loan is better for me?

In my opinion, I prefer collateral loans because they are easy, straight-forward, and usually, have lower interest rates. For example, Chapes-JPL offers collateral loans in Atlanta, Georgia with interest rates as low as 2.5%. Amazing, right? “Chapes-JPL is a fully licensed and insured money lender, operating from 3355 Lenox Rd. NE #875, Atlanta, Georgia, 30326.” Your loan through Chapes-JPL will last 30 days, but you have the option to extend your collateral loan for as many 30 day periods as you would like. On your loan, your minimum monthly loan payment will consist of interest, security, storage, and insurance fees. This amount will depend on the total amount borrowed as well as the type and value of an asset used as collateral, with rates as low as 2.5%. Since your loan at Chapes-JPL is strictly on collateral, there are no credit checks, so the application process is much easier and less time consuming compared to some other loan options. In fact, most loans are completed within minutes, instead of the typical days or weeks. Chapes-JPL prides themselves on being safe, discreet, comfortable, and honest, so if you are looking for a loan, they are the people to call!

Should I choose a credit card or a loan?

That depends on what you are looking for! If you want a one-time payment, you might be better off with a loan. If you want something safe and secure, definitely go with a collateral loan for Chapes-JPL. If you want a back up when you are out and about, a credit card might be a good option for you.

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