Should you take out a personal loan or use a credit card?
Do you have expenses to cover and are wondering whether you should take out a personal
loan or charge them to your credit card and pay it later? Our credit card vs. personal
loan calculator will help you determine the best alternative by comparing the total
cost of credit card debt versus that of a low-cost personal loan.
Enter your preliminary loan terms as well as your current credit card’s APR.
If you do not have a loan offer, you can use the following APR ranges to predict what you may be able to qualify for based on your credit score:
Excellent (9% - 12%); Good (13% - 17%); Average (18% - 23%); Bad (24% - 35%); Poor (Unlikely to qualify)*
What are the assumptions used in this calculator?
Assumes that the borrower makes the minimum required monthly payment for the credit card, which is calculated by dividing the APR by 12 and adding an extra 1%.
What does it mean?
Based on the total amount borrowed and the loan and card terms you entered, you will end up paying a total of -- in interest by choosing a credit card and only making the minimum payments, compared to -- if you choose a loan. Additionally, it will take you -- month, or more than -- years to pay it off, while your loan has a set term of -- years. Unless you set up a quick and strict repayment plan, credit card debt can linger for years and cost you thousands in interest.