When you need liquid funds, you have two options: a personal loan or a credit card. Both options will make cash accessible for you when you need it instantly.

Which is better, a personal loan or a credit card loan? According to experts, taking credit cards for short-term debt is suggested. On the other hand, a personal loan best fits those individuals who require long repayment tenure to pay the debt back.

So, when it comes to personal loans, Vs. For credit cards, you must first find a low-cost option that also meets your need.

When does the personal loan work better?

Personal loans are a better option because they give you control over your repayments. Also, it is easy to take a personal loan because there are no strict eligibility criteria.

 Based on your qualifications, needs, and profile, you can avail the different types of personal loans that are customized to fulfill your requirements.

Benefits of taking a personal loan

Here are the benefits made after availing of the personal loan

  • The eligibility criteria to avail of the personal loan are less strict than the credit card eligibility criteria
  • If you want to consolidate the debt with a low-interest rate, then personal loans are an ideal option for you
  • A personal loan is the best option if you are in need to pay a lump sum amount for various things, in which some of the payments need to proceed in cash
  • You can easily apply for a personal loan either online or offline, according to your convenience
  • When taking a personal loan, if your documents are verified, the loan amount is disbursed into your account within 30 minutes.

How does a credit card loan work

When you need small or large ticket purchases, then a credit card loan is a convenient option for you to pay it. You can either use the credit card online or physically in-store. It comes with drawbacks also.

 If you sometimes lose control of your credit card purchases or cannot pay off the entire balance in a scheduled billing cycle, you have to pay the high interest on the remaining unpaid amount. With time, you can also catch yourself in the situation of the debt trap.

It shows that there are strict regulations to pay the credit card bill payments on time, or you are falling into the debt trap. This is how credit card loan works.

Benefits of cedit card

Credit cards come with many benefits, as follows as

  • A credit card helps you anytime when you are in urgent need of consolidating your debt without additional documentation
  • If you have a good credit history, you can easily avail of the credit card loan
  • There is no need to visit the bank branch to apply for a credit card, and you can do it online, also


Credit cards and personal loans appear the same from all the facts. The only difference between both options is the interest rates charged on them. It is indeed tough to call any of one option in between a personal loan or credit card.

A lot depends on your requirements, circumstance, and perspective to determine the clear winner.

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