What’s the difference between a personal loan and a credit card?

How do you compare a personal loan vs credit card?

With a credit card, you have access to a line of credit. Consequently, you can spend up to a certain limit each month. Once you repay what you owe, that amount is available to you again. Then they charge you interest on your borrowing only if you don’t repay what you owe in full when your bill is due. There are many different types of credit cards that have different features and benefits. These range from helping you spread your costs, clear existing credit card debts or giving you rewards for your spending.

More about personal loan vs credit card

With a personal loan, you borrow a fixed amount off a lender. Then you pay it back in monthly instalments plus interest over the term of your loan. Once you repay your loan in full, you’ll clear your debt. Then, they apply interest to the amount you borrow over the whole term of your loan. As a result, you’ll pay back more than you borrow at the end of your term.