In case you need money, you may always plan to borrow money. It can either be a credit card, or it can be a personal loan. Both these options are helpful for the borrower depending upon their needs.

Sometimes a borrower may require money for home improvements, while other times, it may be necessary for a new car purchase.

Many borrowers avail of loans for consolidating their debts as well. Understanding your need and the basic difference between both options is important.

In Credit cards, the borrower can avail of up to a certain limit, whereas personal loans offer a higher amount based on the repayment capacity.

Choosing the right option

The credit rating often considers your repayment capacity. Several loan agencies in Ireland look from this perspective. The higher your score, the higher the credit limit you will be offered.

In this, income has a crucial role to play. The credit card provider sets a certain limit that is often changeable depending upon the borrower.

On the other hand, personal loans usually offer large amounts of money as a lump sum.

There are certain fixed repayments every month that you need to make. Most of the lenders have more or less the same repayment terms.

When to use a personal loan?

There are certain situations where you can avail of personal loans.

  • When qualifying for a low APR personal loan in Ireland, you can always go for a personal loan. This will help you have lower monthly repayments, making the loan affordable.

Also, your principal amount is reduced quickly. There is less burden on the borrower, and you can enjoy and use the amount as per your financial needs.

  • In another case, if you wish to consolidate your large debt, personal loans are your go-to options. Certain people have huge debts on them with high-interest rates.

If you use your loan as a debt consolidation loan, you can finish up your borrowing in a few years. Also, the burden is reduced, and you just have to pay one at a time.

  • Thirdly, personal loans are good for you if you require huge finances to finance a large one-time expense such as a car purchase or home improvement.

They are not taken out frequently, but whenever they are availed, it is for the main purpose. This loan will help you to fulfil all your expenses that can be difficult to be catered to through savings.

  • Some people can make monthly repayments but cannot make a one-time payment. If you fall in the same category, personal loans are for you.

With the capacity to pay off your loan every month, a personal loan will give you the leverage and advantage of huge money and fulfil your major expenses.

Personal loans are termed instalment loans as well. That means you need to pay fixed monthly instalments over a set period. The time is usually from 1 to 5 years, and many lenders try to pre-qualify their borrowers for the same.

Personal loan pros

There are certain advantages to these personal loans.

  1. The interest rate on these loans is lower than the credit card. On average, people avail of these loans due to the low APR in comparison.
  2. Monthly payments are fixed, and there is no fluctuating amount in this. It can be difficult for borrowers to fulfil and apply with varying amounts.
  3. If there is an instant need, you can always apply for bad credit loans on the instant decision in Ireland.

Personal loan cons

There are certain disadvantages as well to these personal loans.

  1. For bad credit borrowers, the interest rate is high. Since the lenders wish to safeguard their lending, they charge a higher interest rate to borrowers with a bad credit score.
  2. In personal loans, you always get a fixed amount of money. Unlike other credit cards, there is no credit line to draw from.

Sometimes this serves as the biggest advantage for borrowers as they do not have any scope to extend their funding.

Opt for Credit cards when:

There are certain situations where credit cards can be availed.

  • Credit cards are a good option for you if you are looking for funding options to cater to smaller expenses. In this, you can spend quickly and fulfil all your important expenses.

Especially certain rewards you get on the credit card are helpful for your small purchases.

  • There is no need to linger on the payment for the next few months. You can finish off the payment in one month.

Usually, it is recommended to repay your full balance every month so that you are not charged interest on the remaining amount.

  • Whenever you qualify for a 0%, promotional offer, it is the best way to avail of funds without interest.

A revolving form of credit is known as a credit card. It helps you to have repeated access to the funds. You do not get a monthly lumpsum mount but are charged up to a certain credit card limit.

Credit card pros

There are certain advantages of credit cards.

  1. Whenever you are a need of money, you can instantly use it. There is no penalty for it.
  2. It helps you in having interest-free purchases. You can pay any time in a month, and there are no additional charges to it.
  3. You have a good credit score. Sometimes, you may have access to certain rewards and points for your credit card. These rewards are helpful at different places.
  4. Most cards have 0% APR, making it easy for the borrower to repay.

Credit card cons

Disadvantages of credit cards are:

  1. If the APR is high, it can make the credit card expensive as you must make monthly payments.
  2. Sometimes credit cards come with a certain kind of annual or late fee. Before availing of any card, you need to check the fees.
  3. Not all credit cards all acceptable to different organizations. Sometimes certain credit cards are in use with prestigious organisations. You need to check with their tie-up organizations and apply for it.


Before taking out any credit card or personal loan, it is important to understand both sides. Also, consider your options whenever you need to borrow a large amount of money.

Both these options depend on the amount you need to borrow and your repayment terms.

Sometimes you may get fixed repayment terms, while other times, there may be flexibility. It depends upon the lender and your current financial capability.

Leave a comment

Your email address will not be published. Required fields are marked *

Apply Now