Borrow with your credit card
A credit card, or credit card, can be very useful. Broad acceptance in particular ensures that credit cards from VISA, Mastercard, American Express and the variants of your own bank are a means of payment that you can use in many places. In principle you can compare the use of a credit card with a revolving credit. The credit card company will advance the money of a purchase, after which you will repay the amount to them.
The way in which you repay amounts differs. If you have a credit card from your bank, for example, it will usually try to collect the monthly amount you spent in one go at the start of the following month.
Other credit card companies offer the option of paying off part of the amount each month. With some credit card companies you are not even obliged to pay anything monthly. You always pay interest, of course, and it continues to accrue if you do not pay off your credit card loan.
Advantage of a credit card
To make the use of credit cards attractive to you, the conditions are sometimes stunted. So read this carefully when making your choice for a certain credit card. For example, some credit card companies will automatically insure your purchases for a certain time after purchase. This can be very attractive.
Standing in red is expensive
Another option if you temporarily want to spend a little more than you have is simply red at your bank. This simply means that you have a negative bank balance and therefore the bank owes money. By default it is usually not such a problem to have a small amount in red at your bank, but if you make agreements about this with your bank it is often also possible to have large amounts in red. However, this is very expensive.
Although it is a very easy way to borrow money, standing at your bank is extremely expensive. The interest rates that banks charge for being red are almost always very high. It is therefore almost always better to take out another type of loan, such as a personal loan. The disadvantage is that it gives a little more administration than standing in red (that’s how you often get a new bank card), but on the other hand, standing in red is a lot more expensive than a personal credit.