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Author: Jye Smith

Is a Credit Card or Personal Loan right for me?

When it comes to buying a home, we all know the drill – get a home loan. Simple. There are many options and variations of home loan to choose from, but they all sit within the same category.

When it comes to the smaller purchases in our lives though, it becomes a bit trickier. Personal Finance offers a number of options, and it can be difficult to decide which is the best fit. You need to take into account things like the size of the purchase, your income, your ongoing credit needs, etc.

The main two options on the market are Credit Cards and Personal Loans.

How do you decide which is best for you? Once you closely examine each product, the choice will hopefully become clearer.

Personal Loans


  • Personal Loans generally offer lower interest rates than Credit Cards
  • You enter a set repayment schedule meaning that your debt has a definite end date.
  • Because your debt is finite, Personal Loans can work out cheaper in the long term.
  • Because the loan payment is a one-off lump sum which you then repay, there is no temptation for extra spending with a Personal Loan.


  • Because Personal Loans usually have a minimum repayment period, you’ll generally have to carry the debt for more than 12 months.
  • They can be inflexible. Some lenders won’t allow for additional repayments. (Greater Personal Loans, however, allow you to make additional repayments).
  • Depending on the lender, and the size of the loan, some Personal Loans can take longer to apply for. Greater Loans can be approved in as little as 24 hours*.

Suitable For

Credit Cards


  • Immediate Spending – once you get your card, you can start shopping for whatever you like.
  • Credit Cards are a great option if you have constant cash flow to keep paying down your balance.
  • Interest Free Days – Greater Credit Cards offer up to 55 days interest free on purchases of you pay the full balance shown on your statement each month.


  • Depending on your bank, and your card, Credit Cards generally come with a higher interest rate.
  • You’re only required to pay off a minimum amount each month, meaning if you only pay this amount, your debt can roll on and on.
  • Once your balance transfer honeymoon period is over, your card may revert to a high interest rate.

Suitable For

  • Smaller purchases less than $5,000.
  • Small debt consolidations.
  • Short term debts.
  • Everyday shopping & retail purchases.
  • Spending amounts you can pay back within the introductory period.

If you’d like to know more about Greater Personal Loans click here, and if you’d like to check out The Greater’s low-rate Credit Card, click here.

You can even get your Personal Loan or Credit Card applications started online.

If you found this blog helpful, and would like to receive more regular financial hints and tips from The Greater, be sure to connect with us on Social Media for regularly updated content.

*Subject to meeting Greater Building Society lending criteria and the provision of documentary proof.