A credit card is normally used to spend a certain amount of money that can be paid monthly. The limit of what you can spend is determined by the card you choose, your provider and can be influenced by your Financial Standing. These limits can range from a few hundred to several thousand euros per month. For more details about credit cards you can read the article here.
Summary of Personal Loans
A personal loan is usually obtained for a larger purchase as a single sum (for example, a car, house renovations). Personal loans can also be used to consolidate debts and facilitate the management of payments in a single payment. Personal loans have a fixed amount that is repaid monthly. Personal loans usually range from 1,000 to tens of thousands of euros. For more details on personal loans you can read the article here.
Reasons to choose a credit card
If you are not sure of the amount you need to spend in a month, a credit card would be a better option. As a credit card is not a fixed amount of money, you can spend what you need, with a cap on the card limit. Credit cards also come with a certain level of protection when it comes to purchases. Some cards come with additional benefits such as travel insurance or reimbursement. You can also alter the amount you pay each month so you can pay more to pay off your debt faster. All this considering that you keep up with your regular payments.
Reasons to choose a personal loan
Personal loans allow you to borrow a larger amount of money if you are eligible. Since the amount is a lump sum, a personal loan means that you will have fixed payments every month so that you can make a budget about it. A personal loan also usually has a lower interest rate than credit cards.