Get the Tata Capital App to apply for Loans & manage your account. Download Now

Blogs SUPPORT
Loans For You
Loans for Business
Investment
Insurance
Apply

Quick Links for loans

Quick Links for Insurance

Investment

Offers Quick Pay
Back

Equipment Finance

Avail Digital Equipment Loans
up to Rs. 1 Crore

  • Attractive ROIs
  • Customizable Loan tenure
Know More
Back

Equipment Leasing

Avail Leasing solutions
for all asset classes

  • Up to 100% financing
  • No additional collateral required
Know More
Back

New Commercial Vehicle Financing

  • First time user
  • Retail and strategic Clients
Know More
Back

Used Commercial Vehicle finance

  • Repurchase
  • Refinance
  • Top up
  • Balance Transfer
Know More
Menu  
 
Apply Now

Tata Capital > Blog > Personal Use Loan > Personal Loan Vs Credit Card? Which One to Choose for Funding Travel?

Personal Use Loan

Personal Loan Vs Credit Card? Which One to Choose for Funding Travel?

Personal Loan Vs Credit Card? Which One to Choose for Funding Travel?

Everyone needs a holiday once in a while to unwind. But whether it’s a week-long backpacking trip or a weekend getaway, travelling can weigh heavy on your wallet. Many people opt for a credit card or a personal loan to fund their trips. But is one better than the other? Find out in this article.

Using personal financing for travel

Personal financing offers an array of advantages. It is a collateral-free loan, which you can use to cover all your expenses associated with travelling, including airfares, tour packages, hotel charges, travel gear, etc. Besides, nowadays, you can apply for personal financing online with minimal documentation requirements and a low processing time at Tata Capital.

The eligibility criteria for personal finance primarily includes your CIBIL score, age, monthly income, and work experience. With a good CIBIL score, you can qualify for a high loan amount at lower interest rates. You can also avail of additional features, such as an overdraft facility and flexible EMI plans.

Additional Read: 5 Reasons Why a Personal Loan for Travel is Right for You

Using credit cards for travel

With credit cards, you can instantly pay for purchases, such as hotel bookings, dining, transportation fares, and more on your trips. Credit cards offer excellent incentives, including reward points, cash backs and vouchers for spending.

Besides, you can delay your repayment by making minimum payments monthly without losing your card privileges. You can easily increase your credit limit with good payment history, a high CIBIL score, and a pre-existing relationship with the bank.

Personal loan vs credit card: which is better?

Credit cards and loans come with their own set of advantages. With credit cards, you can fund your travel expenses in real-time at 0% interest for the first 40-50 days. However, the interest rate charged after the initial period can be pretty high compared to the personal loan interest rate.

With personal financing, since you get the loan amount upfront, you can plan your travel better and avoid excessive spending. Also, unless you have a very high credit card limit, you can borrow a comparatively higher loan amount.

So, what is the verdict on personal loan vs credit card for travel? The answer lies with your borrowing needs.  Depending on your loan amount, need for flexibility, loan term and other perks, only you can decide which option works the best for your situation. Each financial institution offers a different set of advantages for personal financing and credit cards. So, understand your needs and compare the benefits. The worthier candidate will shine through.

Additional Read: Tips to Save Money Through Personal Loans

Fund your travel plans with Tata Capital

Whether you want a luxurious holiday or need immediate funds for an emergency trip, Tata Capital can help you with your needs. We offer personal financing starting at an attractive interest rate of 10.99% and flexible tenures up to 6 years.

Enjoy structured EMI plans, overdraft facility, collateral-free funding, swift disbursal, and zero charges on pre-payment with us. You can even plan your loan term and EMI with our personal loan EMI calculator.

To know more, visit our website right away!

Apply Now

Get an Instant Personal Loan for all your needs !

Apply now
Popular Searches
loan without cibil personal loan for 15000 salary Loan for ring small cash loan on aadhar card pre approved personal loan What To Buy On Dhanteras Personal loan when self employed how to increase cibil score form 15g for pf withdrawal how to download aadhar card
Disclaimer

Most Viewed Blogs

Trending Blogs

Calculator

Personal Loan EMI Calculator

Personal Loan EMI Calculator
Home Loan EMI Calculator

Home Loan EMI Calculator
Business Loan EMI Calculator

Business Loan EMI Calculator
Used Car Loan EMI Calculator

Used Car Loan EMI Calculator
Two Wheeler Loan EMI Calculator

Two Wheeler Loan EMI Calculator
Loan Against Securities Calculator

Loan Against Securities Calculator
Loan Against Property Calculator

Loan Against Property Calculator
More Tools
Our Subsidiaries
Our Other Websites

Useful Links and Resources

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Policies, Codes & Other Documents

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Tata Capital Solutions & Services

Uh oh, something went wrong

Please try again later.