The decision between a credit card and a personal loan can be a complicated one. Both are essentially debt instruments but their use varies a lot. The main different between a credit card and a personal loan is flexibility.
A credit card allows you to decide how much you borrow and how much you pay back on a monthly basis. Credit cards are tailor made for relatively small purchases. For example, for some credit cards, you can get cashback on certain spending categories, such as petrol or groceries. A lot of credit cards also come with promotions and rewards that can further reduce your monthly spend if you use the card frequently. If you are looking for a little more flexibility in your monthly spending, a credit card is an excellent choice.
A personal loan, however, usually has a fixed interest rate and fixed loan repayments. You are also committing to a fixed loan amount up front. This kind of debt is ideal if you try to finance a big purchase, such remodeling your kitchen or buying wedding jewelry. The fixed nature of the loan makes this kind of debt ideal for such purchases.