5 Pros of Credit Cards Over Personal Loans

Credit card loans and personal loans are among the top go-to options when someone is in dire need of liquid funds. However, among these two, credit cards have the most infamous reputation mainly due to their generally high-interest charges. 

There are several reasons why opting for credit card loans is a lot better than going for personal loans. In fact, in the bigger picture, it could be the easiest and cheapest financing option you can rely on. Here are five advantages of credit card loans over personal loans that you have to know.


Credit cards’ feature, “spend now, pay later,” is undoubtedly its best suit. The loans and funds from credit cards are instantly disbursed. Small purchases and expenses are just one swipe of your card away, while huge funds for large purchases are typically sent to your account. On top of that, you can take your time and flexibly pay these loans off later. 

The majority of credit card loans are unsecured and pre-approved as well. Unlike personal loans, it spares you the hassle of processing loan applications, submitting documents, or securing post-dated cheques, collaterals, and guarantors. All you need is to make timely repayments regularly and keep your account in good standing. 

Flexible Borrowing

Personal loans are one-time borrowed funds, so all you can spend is the fixed amount you borrowed upfront. It’s not the best option in a situation that calls for small purchases regularly. There could be another financial burden if you unexpectedly need urgent financing after taking out a personal loan.

On the other hand, credit card loans offer ongoing access to funds because it’s a revolving credit. To put it simply, credit card holders can continually spend and pay with their credit cards, provided that it’s within their credit limit and they’ll make their minimum monthly repayments religiously.


Despite being notorious for having high-interest rates, credit cards offer cash withdrawals with zero-interest for up to 30 and 52 days. Although this is only up to a specific limit, it comes in handy, especially for short-term cash flow issues and financial emergencies. 

Hence, to enjoy these interest-free cash withdrawals, it’s important to remember to pay your minimum monthly repayments.

Flexible Repayment 

Low-cost equated monthly installments (EMI) is another advantage of credit cards. It enables you to spread out and pay off the total costs of your purchases over monthly installments. As a result, your loan will not leave a considerable hole in your finances. 

There are also other personal loans that can be paid in installments. For example, monthly loans by CreditNinja can be paid off weekly, bi-weekly, or on a fixed schedule that’s decided by both the lender and the borrower. 

However, what makes credit cards better than personal loans is the variety of options you can choose to pay off your EMIs. For example, credit card loan repayments can be deducted directly from your monthly credit limit or automatically deducted from a separate savings account. 

Credit cards also allow credit card holders to transfer separate loans into a single card. These outstanding balances can be paid off in EMIs on their credit card loans, often at zero interest within 12 to 21 months of repayment tenure. This is a favorable debt consolidation option compared to personal loans. 

Member Perks 

Most credit cards offer several generous perks that you can use to save money, earn rewards,  finance new purchases, and even pay off your debts. All of these lucrative perks are not offered in personal loans. 

The most typical perks are free shipping and shopping discounts. These usually offer cashback credited directly to your account. You also get points and rewards that can be accrued and redeemed for gift cards and travel necessities.

Credit card loans also offer credit card purchase protection. It allows credit card holders to file a claim to replace, repair, and reimburse damaged or stolen tangible items with their issuers within a limited time frame. However, it does not often cover lost items. 

Apart from purchase protection, other credit card benefits also offer warranty, price, and return protections. Price protection offers a lower price to a purchased item. Extended warranty protection extends the coverage time under an original manufacturer’s warranty. Finally, return protection puts off the time an item has to be returned. 

Several card credit holders enjoy exclusive access to concerts, sports shows, fine dining events, and even free admissions to some museums. They may even have advantages in grabbing priority seats, presale accesses, and complimentary tickets. 

In Conclusion

SCCU Credit card loans are a good way to gap unexpected expenses, especially if there’s no built-up emergency fund ready yet. You can avoid the financial risk that comes with them if you have good control over your spending and do your due diligence well.

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