Is a Credit Card or Personal Loan Better?

Considering the differences may help you pay off your debt faster, while paying less interest.

Whether you want to pay for your wedding or pay down debt, you may be considering using a credit card or taking out a personal loan. Although these solutions have some similarities — both are technically loans (not requiring collateral) and both tend to offer borrowers with good credit more favorable terms — there are also important differences.

Take a look at how credit cards and personal loans compare.

While credit cards are convenient for day-to-day purchases, personal loans may be a better long-term option for big expenses or paying down higher-interest debt. Consider your priorities and your financial situation to decide what works best for you.


  1. Federal Reserve statistical release: Consumer Credit, May 2021,” July 8, 2021, Board of Governors of the Federal Reserve System

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USA PATRIOT Act Notice: Important Information About Procedures for Opening a New Account

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.

2. The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The federal agency that administers compliance with this law concerning FinWise Bank is the FDIC Consumer Response Center, 1100 Walnut Street, Box #11, Kansas City, MO 64106. The federal agency that administers compliance with this law concerning Coastal Community Bank is the Federal Reserve Consumer Help Center, P.O. Box 1200, Minneapolis, MN 55480. The federal agency that administers compliance with this law for LendingPoint is the Federal Trade Commission, Equal Credit Opportunity, Washington, DC 20580.

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