When it comes to borrowing money in Malaysia, most people are torn between two choices: personal loan or credit card. Both give you access to funds, but they work very differently — and choosing the wrong one could cost you thousands in interest.
In this article, we’ll compare personal loans and credit cards from a practical Malaysian point of view. You’ll learn the pros, cons, and which option suits your needs best.
| Feature | Personal Loan | Credit Card |
|---|---|---|
| Type of credit | Lump sum (installments) | Revolving credit (pay-as-you-use) |
| Interest rate | Fixed (3%–15% p.a.) | Higher (12%–18% p.a.) |
| Repayment method | Fixed monthly repayments | Minimum monthly payment allowed |
| Loan tenure | 1 to 7 years | No fixed tenure |
| Application process | More documents required | Easier if already pre-approved |
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