15:11 19 October 2013
During tough times, making ends meet becomes more difficult and people opt to apply for more credit. Without assets to pledge as collateral, your options are mostly limited to overdrafts or a personal loan. To help you determine which one is more suitable for your needs, let us compare overdrafts and personal loan.
What is Overdraft?
An overdraft is an extension of credit where an individual is still allowed to withdraw funds from his account even if the account has no more balance. The amount of overdraft allowed for an individual is to be agreed on between the account owner and the concerned bank. However, in case where the individual exceeded his overdraft limit, then there will be some additional charges.
Advantages of Overdrafts
Disadvantages of Overdrafts
What is a Personal Loan?
A personal loan is a loan approved based on credit history as well as the borrower’s salary.
Advantages of Personal Loans
Disadvantages of Personal Loans
Personal loans or overdrafts? Whatever you choose, keep in mind to pay the loan on time and in full to avoid affecting your credit score negatively.
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