personal loan rhb

Which is better? Personal loan or credit card?

When you’re in a pinch, and you need some cash urgently, personal loans and credit cards are some of the ways that can get you out of that trouble. Both methods are similar in a way that you have to repay with some form of additional interest, but they have their differences as well.

However, do you know which is better? What factors determine that you need a personal loan or a credit card?

Different needs

Both personal loans and credit cards are for different situations in your life. People more often use personal loans to cover bigger expenses such as weddings and remodelling a home. Meanwhile, credit cards cater to everyday payments or the big-ticket retail purchases once in a while.

Amount of loan

Personal loans have a higher upper limit and can reach a maximum of RM150,000 while credit cards have a credit limit. However, both paying methods have their limitations, and it all depends on your income level.

personal loan rhb

Interest rate

The interest rate for both personal loan and credit cards are different. Using credit cards charges you an interest rate of 15% to 18% per annum on retail transactions and 18% per annum of cash advances. On the other hand, personal loans have interest rates as high as 24% per annum.

Length of the repayment period

Also known as tenure, both paying methods offer you a different amount of time for repayment. Personal loans have longer tenures than credit cards, which can last up to five years. Credit cards tenures aren’t fixed, and the bank chips away the balance amount monthly.


Unfortunately, taking a personal loan does not offer freebies like credit cards. However, you can only enjoy credit card freebies like air miles and reward points if you know where to spend and if you meet the specific spend criteria.


So, do you get a personal loan or a credit card? The answer is it all depends on your situation and needs. If you need a personal loan, visit now!