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Credit cards may be better for short-term, smaller purchases, while personal loans can be more suitable for larger, planned expenses.
Which one to go for will depend on your individual circumstances, and what you need the money for.
Learn more about:
Credit cards are a line of credit that offer:
Personal loans can offer:
Learn more: Quick guide to personal loans
Depending on the lender and the type of credit card you have, you may be able to transfer the balance of your loan across. This should be outlined in the loan agreement, but if you’re unsure, contact your loan provider and check if there are any fees or charges for transferring your balance.[@financing-early-repayment-warning]
If you’re moving the balance to a 0% credit card, make sure you’ll be able to repay the amount during the 0% interest-free period to avoid being charged interest later.
As you’ll need to make monthly repayments, a personal loan can give a more structured repayment plan. You’ll need to pay interest, but a fixed-rate personal loan means you’ll be paying one interest rate for the full loan term.
Make sure you’re able to meet the repayments on a personal loan.
If you're not sure if a personal loan is right for you, you may want to look at an instalment plan, which you can repay over a fixed term.
Before you borrow anything, it’s important to consider what you can afford, taking into account any fees and charges, and the interest.[@financing-refinancing-warning]
There may be other borrowing options that are better suited to your needs, such as a mortgage if you’re purchasing a home or an education loan if you’re paying school fees.
It’s important to weigh up all your options before applying to borrow money. Applying for lots of credit can have a negative effect on your credit score.
Put your plans into action with an HSBC Personal Loan.
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