When to Choose a Personal Loan and When to Use a Credit Card?

Go for a personal loan if you:

• Need RM10,000–RM100,000

• Want fixed monthly repayments

• Are consolidating debt

• Have big plans (wedding, renovation, medical)

✅ Pros:

• Lower interest

• Easier to budget

• Better for long-term needs

❌ Cons:

• Slower approval

• Late payments hurt credit score

💳 When to Use a Credit Card

Use a credit card if you:

• Need short-term funds

• Can repay in full monthly

• Want cashback or travel rewards

✅ Pros:

• Instant access

• 0% instalments available

• Good for emergencies

❌ Cons:

• High interest if unpaid

• Easy to overspend

🧠 Real-Life Example

You need RM8,000 for surgery:

• Credit Card (18% interest): RM1,400/year

• Personal Loan (6% for 2 years): RM425/month, total interest ~RM600

👉 Better Deal: Personal Loan