View Message

Alert
We are currently experiencing intermittent issues with Zelle outbound payment services within Digital Banking. Our team is actively working to resolve the issue as quickly as possible.

We appreciate your patience and understanding as we work to restore full service and enhance your digital banking experience.

Thank you for being a valued member.

Personal Loans vs. Credit Cards

When it comes to borrowing money, two of the most common options are personal loans and credit cards. Each has its advantages and drawbacks, and the right choice depends on your financial needs and goals. Let’s compare interest rates, repayment terms, and benefits to help you make an informed decision.

Interest Rates

  • Personal Loans typically offer lower interest rates, especially for borrowers with good credit. Rates are fixed, meaning your payments remain the same throughout the loan term.
  • Credit Cards tend to have higher interest rates, especially if you carry a balance. However, promotional 0% APR periods can be beneficial for short-term borrowing.

Repayment Terms

  • Personal Loans have structured repayment schedules, usually ranging from 12 to 60 months. This helps with budgeting and ensures the loan is paid off within a set timeframe.
  • Credit Cards offer flexible payments, but only paying the minimum can lead to long-term debt and high interest costs.

Benefits

Personal Loans:
Lower interest rates.
Fixed repayment terms.
Ideal for consolidating debt or financing large purchases.

Credit Cards:
Convenience and flexibility for everyday spending.
Rewards,
cashback, and perks like travel insurance.
Useful for short-term borrowing with promotional interest rates.

Which One is Right for You?

  • Choose a personal loan if you need to consolidate debt, finance a large expense, or prefer predictable payments.
  • Opt for a credit card if you need flexibility, plan to pay off your balance quickly, or want to take advantage of rewards and perks.

At MCU, we offer both options with competitive rates and member-friendly terms. Visit our Personal Lending Center to find the best borrowing solution for your needs!

Get What You Need, When You Need It.

Quick and easy access to funds with no hidden fees and flexible terms.

Learn More
You are now leaving the Municipal Credit Union website and entering a website hosted by another party. A link to this site is being made available for convenience and informational purposes only. Any products or services accessed through this link are not being provided by Municipal Credit Union and are solely the responsibility of the vendor or merchant hosting this other website. Please be advised that the vendor or merchant hosting this other website may have a privacy and information security policy that is different than that of Municipal Credit Union. Municipal Credit Union disclaims any responsibility for the content of the third-party website you are about to access.