Credit Cards
The reason many people find credit cards an enticing option is because they are easier to apply for. However since the credit crunch, it may not be as easy as you think. Now more than ever, applicants are having a hard time getting approved for even those most basic cards. According to CreditCardForum.com, during 2009 the number of denied applications hit a record high. For those that were approved, many complained the credit limits simply were too low.

Personal Loans
In the United States, personal loans are not as popular, but they are still big overseas in European countries. It’s similar to a credit card in that it is usually unsecured, however the difference is that a personal loan is that the amount, interest, and payback schedule is set up front when you apply. Many people like the fact that this option offers a predictable interest rate (which we all know isn’t the case with credit cards). But a big drawback is that the payback schedule is not flexible.

Which Is Right For You?
As we said at the beginning, there is no “one size fits all” answer. Speaking to a loan consultant can be helpful, but keep in mind they may try and steer you only to what they are selling. Therefore your best bet is to do as much research as possible so you can make an informed decision.