Credit Cards Vs Personal Loans - Which Is Better

Is a Credit Card better than a personal loan? Well, strictly speaking a credit card is a form of personal loan although interest is paid only on the balance that has accrued. Having adequate cash flow is the life-blood of any business. The same could be said about our personal lives.

If the cash runs dry where do we turn for assistance? A source of funds, such as a credit card, can help you survive in times of crises. Some credit cards are worse than others and the best credit card will depend on how its features fit with your personal circumstances.

For big spenders only! The American Express Platinum Card is for those who have the cash and don't mind spending it. It has one of the largest annual fees at $450 but offers some fantastic rewards. To begin with you'll be relieved to know that you get $200 to cover airline fees every year. If you spend over $2,000 within the first three months of being approved for the credit card you'll also receive a bonus of 25,000 points. The Platinum also gives you a 20% bonus when it's time to redeem your points. As you can see the bonuses add up but only if you are spending a decent amount each month. The 200 dollars to cover airline fees also makes the annual fee seem a little less dramatic.

Do you have a large debt that you would like to transfer over to another card? Try the Chase Freedom Credit Card. This is the card for you as it has no annual fee and has no APR on purchases and transfers for the first 15 months! That's 15 months interest free and definitely a good incentive to transfer any large credit debt over to this card.One other great thing about this card is that it focuses on cash back rewards. What if I told you, you could earn up to 5 percent in cash rewards? The cash backs top out at $1,500 per quarter.

If you like to travel you may be drawn to the United Mileage Plus Credit Card. Well, if you like to travel on United Airlines this card will save you at least $50 per flight. With this card your first check-in bag is free. You'll also receive 25,000 miles (there name for points) the first time you use the card.

Some credit cards accrue no interest for certain period of time. This can be really handy if you are transferring a large debt over from another credit card. Usually the interest free period as one year but can be longer such as with the Chase Freedom Credit Card which has a zero APR (Annual Percentage Rate) for the first 15 months. You also receive $100 cash back just for signing up!

There are many factors that you need to take into account before you apply for a credit card. Once you have a large debt on a card with a high interest rate it can be difficult to pay off. You're always better off comparing the various cards in the beginning before making a decision.