We believe everyone should be able to make financial decisions with confidence. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. We're on your side, even if it means we don't make a cent.At Nerd Wallet, we thoroughly research financial products and companies, and adhere to strict standards of editorial integrity to find you the best choices.We even share how we make money so you can rely on our expert advice and recommendations with clarity and confidence.When you need to borrow, you might consider a credit card or a personal loan.Since personal loans typically have lower interest rates than credit cards, they’re a better option if you aren’t able to pay off your balance in full each month. Credit cards and personal loans can be used as tools to roll multiple debts into a single payment.
Someone with a high score typically has both types of accounts.Credit cards are one of the most expensive forms of financing, with interest rates in the double digits unless you have credit good enough for a 0% promotional offer.On your credit card’s payment due date, you’re obligated to make a minimum monthly payment — generally around 1% to 3% of the balance — but you’ll need to pay it off in full to avoid accruing interest.Credit cards are ideal for short-term expenses that you can pay off in a month, while personal loans are best used for long-term expenses, financing a big purchase or consolidating multiple debts.Your decision to use a credit card or personal loan will depend on your credit score, how much you want to borrow and how long you have to repay it.A loan with a longer term may have a lower monthly payment, but it can also significantly increase how much you pay over the life of the loan.