Installment loan directly available: You will receive the agreed amount on your account and can dispose of it freely.
The big picture: Thanks to fixed and precisely calculable monthly installments, you will always know how your budget is doing. And your fixed expenses will remain predictable.
A high degree of freedom with a credit card: In many countries, you can use them to make cashless payments, go shopping in stores and online shops, and withdraw cash at thousands of ATMs.
Interest-free time buffer: When you use a credit card, a certain period is granted until your account is debited.
With an installment loan, the agreed amount is paid into your account and you are free to use it as you like. Your personal creditworthiness is assessed before lending, and the monthly loan installment and term are determined according to your needs.
Advantages and disadvantages
As the monthly installments stay the same, you always know where you stand with your budget and your fixed outgoings remain manageable. If you find yourself short financially, contact your provider straight away in order to find any possible and suitable solutions together.
With a credit card, you can make cashless payments in many countries, shop in physical and online stores, and withdraw money from cash machines around the world. In addition, with a credit card, you have an interest-free time buffer before your account is debited. Card fees and commission vary at home and abroad. It is worth comparing options before applying, as each provider (for example Visa or Mastercard) has its own products for the relevant use. In addition, some merchants charge an extra fee if you want to pay by credit card.
If the credit card statement cannot be settled on time at the end of the month, interest accrues that is often higher than with an installment loan. It is also important to note that the delayed debiting of the account makes it more difficult to plan your own budget.
Take advantage of specialist advice.