When an unexpected expense comes your way or you’ve been wanting to make a larger purchase, choosing between a personal loan or a credit card can be difficult. There are distinctions between the two, and knowing when to use your credit card or take out a personal loan can prevent financial hardship down the road.
If you need to take out a large lump sum of money for a project or want to pay off high-interest credit card debt, then you may want to consider a personal loan. If you’re making a smaller, everyday purchase, a credit card is the better option.
Here’s a look at the key differences between a personal loan and a credit card and how to determine which option is best for you.
Key differences between a personal loan and a credit card
A personal loan provides a lump-sum