Compare borrowing costs between a personal loan and credit card to find the smarter option
Updated October 2026Built and checked by MaverickHow it's calculatedReport an error
Costs less
Personal loan
lower total repaid
Difference
$501
in total repaid
Loan cleared in
19 months
$406 interest
Card cleared in
20 months
$907 interest
Same monthly payment in both cases: the difference is how much of it goes to interest and fees.
At a lower rate, more of each payment goes to the balance, so it clears sooner.
The monthly amount you entered, applied to each.
Credit card or personal loan? This puts the two side by side on your numbers: the interest each would cost, and how long each takes to pay off.
As of 7 November 2026, the lowest personal loan rate is 5.80%, from Plenti Personal Loan, while the typical best across 68 institutions is 7.96%.
As of 7 November 2026, the lowest credit card purchase rate is 7.49%, from Unity Bank's Low Rate Visa Credit Card, while the typical best across 51 institutions is 12.49%.
Jake needs $8,000 and can pay $400 a month. A card charges 20%; a personal loan 10% with $250 of fees.
The personal loan costs $840 of interest plus $250 of fees and is cleared in 23 months; the card costs $1,813 over 25 months. The loan is $722 cheaper.
Emma needs $2,000 and can pay $300 a month. A card charges 20%; a personal loan 12% with $250 of fees.
Both are cleared in 8 months. The card's $138 of interest beats the loan's $101 of interest plus $250 of fees by $213 - on a small amount paid quickly, fees decide it.