Let’s discuss credit card vs personal loan calculator. Yes, in many cases, a personal loan can be a better borrowing option than using a credit card, depending on your financial goal. But it’s not always the right choice. This is because;
Personal loans typically charge lower, fixed interest rates compared to credit cards. In India, personal‐loan rates can range from 10% to 18% p.a.
Credit cards, especially when you carry a balance, often charge much higher variable interest, sometimes reaching 24% to 42% p.a. This makes personal loans cheaper for larger, long-term borrowing.
A personal loan is an installment-based loan: you get a lump sum once, then repay fixed EMIs over a fixed tenure.
Credit cards offer revolving credit: you borrow up to your limit, repay partially (minimum or full), and borrow again. The fixed EMIs give predictability with a personal loan, which helps with budgeting.
Personal loans are ideal for large or planned expenses like weddings, medical costs, or renovating a home.
Credit cards are better for everyday spending, small purchases, or emergencies especially if you can pay the full balance each month to avoid interest. Cards also offer rewards, cashback, or travel points something personal loans usually don’t.
Personal loans may involve a processing fee or a prepayment penalty if you repay early. Credit cards charge annual fees, late payment fees, over-limit fees, etc.
Taking a personal loan and repaying consistently can boost your credit profile because it shows structured repayment behaviour. Credit cards also help build credit if you pay in full and maintain a low utilisation ratio, but carrying high balances can damage your score.
With a personal loan, you have a fixed end date, so once it's repaid, the debt ends. Credit cards can trap you: if you only make minimum payments, interest compounds, and the debt can last indefinitely.
This is all about credit card vs personal loan calculator. Hope this helps!
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Is a Personal Loan Better than Credit Card?
ashish
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2025-11-24T19:21:35+00:00 2025-11-24T19:21:38+00:00Comment
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