If you check out our articles, we have so many posts on how to clear your debts, which credit cards to choose or even misconceptions that people have about loans but as someone new to personal finance, my biggest question before reading such articles would be which loan should i take? This article will focus on the two most common loans, credit card and personal loans!

Credit Card or Personal Loan Credit Card

A credit card is also known as “revolving debt”, you have a pre-determined credit limit set by your financial institution. At the end of every month, you will be required to pay a minimum on the expenses charged to that card (usually 1% to 5%) once that is done, you are free to continue spending on that card.

With interest rates going up to double digits, credit cards are better used for smaller purchases but if you do …