In Japan, card loans allow customers to borrow money using a credit card. Applications for card loans do not require collateral, but there is a screening process with the borrower's financial institution. If the borrower does not pass the screening, the financial institution might not loan the money.

When using a card loan, the borrower pays the amount borrowed plus interest at a rate set by the financial institution on a specific day each month. The payment method used for a card loan is similar to the revolving payment system used for credit cards. Therefore, understanding the difference between card loans and credit card revolving payments can be challenging.

It is important for businesses to know the specifics about revolving payments and card loans. This can help them understand customers' payment behaviour and refine payment plan options. For example, businesses that offer high-value products or subscription services could offer payment options that take into account the customer's cash flow.

In this article, we examine card loans, including their pros and cons, the differences between card loans and revolving payments, and how refinancing works.

What's in this article?

• What are card loans?
  
• What are credit card revolving payments?
  
• How do card loans and credit card revolving payments differ?
  
• Repayment methods for card loans and credit card revolving payments
  
• The advantages of refinancing credit card revolving payments with card loans
  
• What to know about refinancing credit card revolving payments with card loans
  
• Credit card revolving payment refinancing with a card loan: An example
  
• Process of refinancing a credit card revolving payment with a card loan
  
• Frequently asked questions about card loans and credit card revolving payments
  
• From expanding payment methods to increasing sales