Which loan suits you depends very much on your personal preferences and personal situation. There is therefore no standard answer to this question. We hope that with the information on this page in combination with the information in our comparisons you can provide the answer to this question yourself.
Types of loans
There are all kinds of loans, much more than the revolving credit and the personal loan to which we limit ourselves here. In addition to the above loans, think for example of a credit card or overdraft on your payment account. These types of loans usually focus on amounts up to $ 2500 for which you have to pay much more interest than for a revolving credit or personal loan.
Below we list the main features of a revolving credit and personal loan:
| Revolving credit | Personal loan | |
| Fixed or variable interest | variable, can change | interest is fixed during term |
| Fixed monthly charge during term | Yes | Yes |
| Fixed term | No | Yes |
| Amounts repaid can be withdrawn | Yes | No |
| Pay off without penalty | Yes | sometimes, see our comparison |
What do others choose?
What people choose depends very much on their personal situation and wishes. Those who want security opt for a personal loan, those who like flexibility prefer a revolving credit. But beware, the interest on a revolving credit is variable so over time, the revolving credit interest may increase and be higher than the interest to be paid on the personal loan. Of course, the interest can also fall and become even cheaper than the interest on a personal loan.
In your own hand?
If you have yourself in your hand and the discipline not to take back repaid amounts, revolving credit may be the best choice. The in principle lower interest, the possibility to make withdrawals again in an emergency and the possibility – if you suddenly get some money at your disposal – to repay the loan in full or in part without penalty make the revolving loan an attractive loan form.
If you want to be sure that you have repaid the loan before or as soon as the product you bought with the borrowed money needs to be replaced, choose a personal loan. Then you know where you stand.