What is the difference between quick loans and credit cards?

Credit cards and quick loans are very different. If you need access to quick cash to cover a one-off emergency expense, a quick loan can help. You borrow once, then repay over a limited number of installments until the loan is cleared. Quick loans are in your bank on the same day that you apply, providing you are approved for the loan, and interest rates are high.

Credit cards work very differently. Most consumers use credit cards as a convenient way to buy large-ticket items or to do their daily shopping. Credit card balances can be cleared each month, which helps to avoid any interest charges, however, you can also opt to repay a minimum charge only, which helps to spread the cost of expensive items, but also means you incur interest charges.

You will usually need a good credit score to be approved for a credit card and interest charges can be high if you don’t clear your balance each month.

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Representative Example: Borrow £400 for 4 months: 3 monthly repayments of £156.09 followed by a final repayment of £156.07. Total repayment £624.34. Interest rate p.a. (fixed) 288.35%. Representative APR 1,267.9%. 

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Warning: Late repayments can cause you serious money problems. For help, go to www.moneyhelper.org.uk.