Battle Royale: Personal Loan vs. Credit Card

Financial choices often boil down to understanding what’s best suited for our needs. In the arena of borrowing, two primary gladiators emerge: Personal Loans and Credit Cards. Both come armed with their strengths and weaknesses. With OneScore, India’s premier app for credit score monitoring, we aim to shed light on this topic, ensuring you make an informed decision when pondering how to get a personal loan or whether to lean on your credit card.

The Fundamentals: Understanding the Contenders

1. Personal Loans:

Typically provided by financial institutions, these are unsecured loans that come with fixed interest rates. They offer a repayment tenure ranging between 12 to 60 months. If you’re wondering how to get a personal loan, platforms like OneScore make the process simpler, especially for those with concerns about a personal loan for low CIBIL.

2. Credit Cards:

More than just plastic money, credit cards provide you with a line of credit. Your borrowing limit revolves around the amount you spend and the remaining balance after each billing cycle.

The Power of Credit Cards


  1. Flexibility:

Credit cards are there when you need them. No extra paperwork or application process –just spend within your limit.

  1. Immediate Access:

Need funds in a snap? Credit cards offer instant liquidity.

  1. Rewards and Bonuses:

Regular use can lead to rewards, cashbacks, and other incentives.


  1. Higher Interest Rates:

Credit card Annual Percentage Rates (APRs) are generally higher than most loans.

  1. Additional Fees:

Late fees, annual charges, and over-limit fees can accumulate.

  1. CIBIL Score Dependency:

A score of 700 and above is often preferred for credit card applications.

The Strength of Personal Loans


  1. Consolidation Power:

For those looking to consolidate debt, personal loans usually offer lower interest rates than credit cards.

  1. Defined Repayment Period:

Know how much you owe and for how long, giving you clear financial foresight.

  1. Versatility:

From home renovation to emergency expenses, the purpose of personal loans is flexible.

  1. Relatively Easier Access:

Especially with platforms like OneScore, even getting a personal loan for low CIBIL becomes an achievable task.


  1. Potentially High-Interest Rates:

Depending on your creditworthiness, rates can range between 13% to 36%.

  1. Documentation:

While it’s easier than before, you still need appropriate documentation to process a loan.

  1. Fixed Payments:

There’s a predetermined payment structure you need to adhere to.

How to Get a Personal Loan with OneScore: Making the Journey Simpler

For those new to the world of finance or facing challenges due to a personal loan for low CIBIL, OneScore simplifies the journey. With its AI-based score planner, not only can you check and improve your credit score, but you also get insights tailored for your financial well-being.

Verdict: Making the Right Choice

Your decision between a personal loan and a credit card should consider the amount needed, the repayment period you’re comfortable with, and the interest rates you’re willing to bear. For short-term requirements, credit cards might prove beneficial. However, for more substantial amounts or longer repayment periods, understanding how to get a personal loan could be more beneficial.

For those concerned about a personal loan for low CIBIL, OneScore can guide the way, offering insights and actionable steps to improve creditworthiness.

In Summary: Knowledge is Power

Whether you’re team Personal Loan or team Credit Card, armed with the right information and tools like OneScore, you’re better positioned to make decisions that align with your financial goals. Always remember, borrowing responsibly and understanding the commitments of each choice is paramount to maintaining financial health.