 TITLE: Is Personal Loan Debt Better Than Credit Card Debt? CONTENT: When to Use a Credit Card\n-------------------------\nA credit card is a revolving credit account. You can charge up to a maximum amount of money (your credit limit) and can carry a balance (\"revolve\") from month to month; you're charged interest on that balance. The minimum payment you must make each month varies depending on how much credit you've used. You decide how much you want to repay each month beyond the required minimum.\nWhat are some of the benefits of credit cards compared with personal loans?\n*   As long as you have a credit history, it's fairly easy to qualify for a credit card. Even if you don't have a credit history, you may be able to get a secured credit card or starter card.\n*   Credit cards offer flexible payment options. If you're short of cash and can't pay off the balance in full one month, you can just pay the minimum.\n*   Some credit cards offer rewards, such as travel miles or cash back, based on your spending.\n*   If you pay off your balance in full each month, you won't accumulate any interest.\n*   If you currently have a balance on a high interest credit card, you may be able to transfer the balance to a balance transfer card that offers 0% interest for a certain period of time.\nOf course, there are some downsides to credit cards too:\n*   Credit cards generally have higher interest rates than personal loans. (The average credit card currently has an annual percentage rate, or APR, of more than 17 percent.) If you carry a large balance, interest charges can add up quickly.\n*   Credit cards typically charge late fees; many charge annual fees as well.\n*   If you make a late payment or miss a payment, the card issuer may raise your interest rate.\n*   If you want a lump sum of cash, you'll need to take a cash advance on the card, typically at higher interest rates than making a purchase with the card.\n*   If you're having trouble managing your money, credit cards can tempt you to spend more than you can afford to pay off.\nIf you need a relatively small sum of money—say, between $1,000 and $5,000—a credit card may be a better option than a personal loan. For example, getting a personal loan to get your car repaired is probably overkill. To find the best credit card for you, consider the credit limit you'd like, what you plan to use the card for, and whether you expect to carry a balance from month to month. Then compare a variety of credit cards, making sure you understand their interest rates, fees and terms. Experian's CreditMatchTM tool can match you up with credit cards you're more likely to qualify for based on your credit profile. END