“Personal loans are treated as a fixed-term loan when calculating your credit score while a credit card is counted as a revolving line of credit. As a result, personal loans are treated more favorably from a credit score point of view.”
Personal loans are one of many types of loans you can borrow from a bank. These loans are typically general purpose loans that you can use at your discretion for things like consolidating debt or paying for an unexpected expense or small home improvement project. Personal loans are often more difficult to get compared to credit cards and have strict qualification requirements. If you’re thinking about borrowing a personal loan, here are some things you know.