Personal loans vs. credit cards
As you can see from the Federal Reserve data, credit cards tend to have a higher average interest rate than personal loans. Unlike credit cards, a fixed-rate loan has a set interest rate.
This means interest payments don’t fluctuate — helping the average interest rate be a little lower. You can also borrow more on overage, even with a lower credit score.
But personal loans don’t come with some of the benefits of a credit card. This makes personal loans a bad choice for regular spending — but a great choice for expenses like debt consolidation.