Sometimes you need to borrow money to ride out a financial emergency. To get the flexible financing you need, you may look to credit cards and personal loans to help. But how do you know which one is right for you and your needs?
You likely already have experience using a credit card. It’s the most common line of credit, a type of financing that lets you borrow money as needed, up to an allowed amount. As you repay the balance, including interest, those funds become available for use again. Credit cards are a great choice when you plan to:
Personal loans function similarly to auto loans. You borrow a lump sum from a lender, and then you make fixed monthly payments that have been calculated to pay off the entire balance within a certain timeframe. A personal loan might be right for you if you plan to: