When managing debt or seeking financial relief, both balance transfer credit cards and personal loans can be useful tools. Each has unique benefits and is suited to different financial situations. So, you must know the balance transfer card vs personal loan difference. For that, you can go through the table I shared with you below.
Balance Transfer vs Personal Loan
Here are the differences between balance transfer and personal loan.
Balance Transfer | Personal Loan |
A balance transfer credit card allows you to transfer your existing credit card debt to a new card with a lower or 0% interest rate for a limited period (usually 3 to 6 months). | It is a fixed-sum loan offered with a set repayment tenure and interest rate. It is ideal for consolidating larger debts or for those who need more time to repay. |
It helps you save on interest if you can clear the balance within the promotional period. | It has lower interest rates than standard credit cards (ranging from 10% to 24% annually) and can be repaid in EMIs over 1 to 5 years. |
This option is ideal for short-term debt repayment. | They also offer greater flexibility for non-credit card debt. |
Balance transfer cards often come with a processing fee, and approval is typically based on your credit score and existing credit utilisation. | If you have a small credit card debt and can repay it quickly, a balance transfer card can save you money. |
I hope you understand balance transfer credit card vs personal loan.
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Also read
What is Balance Transfer Credit Card?
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Which is Better, Balance Transfer Card Vs Personal Loan?
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2025-04-18T11:04:35+00:00 2025-04-18T11:04:36+00:00Comment
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