Personal loans or credit cards, which is a better financial product for making big purchases?

By: Hitesh Khan/

Image credit: Hloom via Flickr

Should you use a personal loan or credit card when making major purchases? Assuming that you have good credit and can qualify to borrow money, here are some things to consider when choosing between the two financial products.

Best interest would determine the financial product you should use for big purchases

The first thing most people look at when borrowing money is the amount of interest being charged. It usually isn’t a problem to find personal loans with fixed rates. Having a fixed interest rate means there won’t be any surprises when you receive your loan statement. You’ll always know exactly how much to set aside each month for your loan payments.

Credit card interest rates sometimes fluctuate. While you may initially be offered a low introductory