So credit card companies look for ways to get you to spend more money that you can afford to pay off in that short time. They may send credit card cheque
books, which are designed to trick you into paying some exorbitant charge like your rent. They also offer periods of lower interest with the hopes you will spend and spend until you cannot afford to pay it back.
However, one of the things they do that is designed to give them the largest chance to make sure they profit off of your interest is to offer you Credit Card Loans. What are Credit Card Loans?
Credit card loans are exactly what they sound like - loans
provided by credit card companies
. Credit card companies (almost always companies that have you as a credit card owner) send you a letter in the mail that says "If you want a £10,000 loan, it is yours if you sign on this line," and people that want the loan sign, take it, and receive £10,000. The whole thing is both surprising and simple, and is usually offered out of the blue. No one knows the exact reason a credit card company offers any individual these loans, though it is assumed that it is sent to people that they think may accept it that also have the history to show they will pay it back. Are These a Good Idea?
No. In general, unless you are in dire need of the money, you do not want a credit card loan. They are of higher interest rates, offered usually when you have no reason to take it, and generally have a number of associated fees and penalties that can affect your financial future down the road.
It can be very tempting, and if you have taken one yourself in the past it does not reflect poorly on you, but these loans are just the credit card companies trying to take advantage of someone in their algorithm that appears to be the type of person that would take a loan when they don't need it, resulting in a lot of extra money being paid off over time and no true reason for that type of financial responsibility. There are far more loan types that are preferable.