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March 15, 2022

Personal loan vs credit card – find out when personal loans make more sense.

When it comes to major purchases, consumers typically have two choices – take out a personal loan or use a credit card. A major purchase could be anything from home repairs to buying a car to covering a medical expense. When it comes to personal loan vs credit card, which is the better choice for major expenses? You could use a credit card to cover the expense and pay it off over time or use a personal loan to cover the amount and repay the debt by your due date.

While you might be tempted to swipe that credit card, there are times when applying for a personal loan makes more sense. Here are four situations where you might want to consider requesting a personal loan.

1. The interest rate is lower

When a major purchase comes up, you should consider whether a personal loan vs credit card is the best option. If you can secure a lower interest rate on a personal loan, it might make more financial sense than a high-interest credit card. When borrowing to make a purchase, you want to secure the lowest interest rate to help you pay off your debt faster and reduce what you will pay overall of your debt. Many credit card companies charge high interest, making it challenging to pay off debt.

2. You’ve reached your credit limit

If you’ve reached your credit limit, you won’t be able to cover new expenses until you pay down your existing debt. If you have an emergency expense, you could request a personal loan online in minutes and receive the funds in as soon as 24 business hours.

3. You have less than excellent credit

If you don’t have the best credit score, it can be difficult to get accepted for a credit card or one with a competitive rate. At Uprova.com, we work with borrowers with a wide range of credit profiles and financial situations.

4. You want to know the total amount you will owe

One of the best things about a personal loan vs credit card is that there is full transparency with personal loans. If you are approved for funding by a lender, you will receive a loan agreement that details the total amount you will owe and the exact date you will pay off your loan. With a credit card, the remaining balance will continue to rollover and accumulate interest until you pay off the amount. You won’t know exactly how much you will pay in interest upfront or how long it will take you to pay off your debt.


When comparing a personal loan vs credit card, it’s important to weigh the benefits and downsides of both. You should always compare interest rates on both personal loans and credit cards to find the best rate for the amount you need to borrow. You should always borrow responsibly and create a financial plan for paying off a major purchase. A personal loan might make sense for you if you can secure a lower interest rate, have reached your credit card limit, have less than excellent credit, or want to know the total amount you will owe upfront and when your debt pay off date will be.

At Uprova.com, we help consumers get the funding they need quickly and efficiently. You can request your loan amount online and receive an approval decision in minutes. If approved, you can receive funds up to $5,000 in your bank account in as soon as one business day. Request the funds you need online at Uprova.com today.

The content of this website is for informational purposes only. Nothing on this website constitutes financial or professional advice. Consult a professional for advice suitable to your personal circumstances.

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