Credit cards and Personal Loans both are unsecured lendings, this means you don’t need to pledge any collateral for your borrowing. Both have different uses but if compared personal loans are a better option than credit cards. This is because the interest rate charged for credit cards ranges from 16 to 36% and for a personal loan it is around 10 to 16%. However, if you leave the interest factor, credit cards are good for frequent shoppers and for short term cash crunches where you don’t need your requirements.