Which describes the difference between a personal loan and a credit card

Answers

The correct option is this: PERSONAL LOANS OFFER LUMP SUM OF MONEY, WHILE CREDIT CARD SET A MAXIMUM AMOUNT A PERSON CAN BORROW.
Personal loan refers to a lump sum of money that a person can borrow from a bank or a credit society. Such loans usually have maturity dates and one has to pay interest on them. Credit card on the other hand is already loaded with money and one can use it to buy anything that one desire but there is a limit on the amount of money that one can spend on a monthly or quarterly basis. One has to pay the credit card company on a monthly basis for the money that one has spend during that month.

Credit cards are secured loans for large amounts, while personal loans are unsecured for small purchases.

Further Explanation:

A Personal loan is usually an unsecured loan that a person can avail for various purposes which may range from medical reasons to expensive purchases or a vacation or even sometimes an applicant can apply for a personal loan for the debt consolidation. Just because personal loans are unsecured loans, the interest rate charged on them is relatively on the higher side as compared to other loans. Credit card loans pre-approved loans and require minimal document verification.

To attain unsecured credit, one must apply for the loan on credit card as it is the fastest way to achieve unsecured credit as a certain amount of money that falls under the limit of Credit card is offered as a loan. The main difference between a Personal loan and a Credit card loan is the amount disbursed under it. In a personal loan, an applicant can apply for a huge loan whereas, in a Credit Card loan, the applicant will get a loan based on the limit of the card.

Learn More:

If you are planning to carry a large balance on your credit card, which of the following credit card features should you look for?   Which one of the following is true about employer responsibility in providing fall protection to workers?  

Answer Details:

Grade: High School

Chapter: Loans

Subject: Finance

Keywords: Credit cards, Personal loan, Interests, Documentation, Pre-approved, money, disbursed, unsecured credit, applicant, medical reasons.

antisocial is people who come off rude whenever they speak. they are not friendly to people. I think some peope turn antisocial because of past bullying issues or problems at home like if a child feels a parent doesn't love them the same as their sibling/siblings or if they feel their parent does't ever have time for them or possibly parents divorce or a family death (i dont know anyone who is an antisocial personally those are just possible thoughts in my opinion of why someone turns into an antisocial). avoidant is like dodging people, or ignoring. When a person has avoidant personaility disorder they try to stay away from socializing/interacting with others as much as possible. I wouldn't define them as rude like antisocial, they're defined as socially awkward i guess like to be independent more than to be a chatter box with others.  

ANTI SOCIAL PERSONALITY:

It is a mental condition in which a person for long term humiliating others, avoiding social norms and violating others without any remorse whatever they did. sometimes they called sociopaths.

Symptoms:

LACK OF STABILITY AT HOME/JOBSIRRITABLE AND AGGRESSIVE.DECIETFULL.

AVOIDANT PERSONALITY:

These personalities are extremely social inhibited.

InadequateSensitive to negative response and rejection.It affects the ability to interact with others and maintain day to day life chores.

3rd one

Step-by-step explanation:

The credit card requires no collateral but in case of personal loan, banks asks for some collateral.  

In personal loans, a huge amount is given on loan but credit card has a certain fixed limit.

Further Explanation:

Personal loan and a credit card:

The personal loan is taken for personal purposes, and the amount given for the loan is much greater than the credit card limit.

In personal loan, the interest rate and the principle amount paid is the same, whether the money is being used or not. But in the case of credit card, only the amount used by the cardholder has to be paid with the interest rate.  

The major difference between the personal loan and the credit card is the collateral. In personal loans, the bank gives the loan on the basis of collateral but in the case of credit card, there is no requirement of the collateral. And collateral is asked by the bank which is a kind of security in case the loan is not repaid by the person who has taken the loan. His or her collateral will be seized by the bank.

Learn More:

1. Credit card

2. Interest value

3. Credit card  

 

Answer Details:

Grade: High school

Chapter: Loans

Subject: Business studies

Keywords:

Which describes the difference between a personal loan and a credit card, in personal loan, the amount is huge than the credit card, credit card has a certain limit. Credit card requires no collateral but in the personal loan, the bank asks for the collateral.

I believe the answer is: Personal loans offer lump sums of money, while credit cards set a maximum amount a person can borrow


In personal loan, the amount of loan and interest rate that the borrower have to pay would stay the same regardless if that borrower use the money or not.

In Credit card, the borrower only required to pay the amount that they use plus interest rate.



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