Credit-card interest vs personal-loan interest
Why carrying a card balance usually costs far more than a personal loan, and what you can do about it.
Why cards cost more
Credit cards often charge interest of 3 to 3.5% a month on unpaid balances, which works out to roughly 36 to 42% a year. Personal loans for salaried borrowers usually carry much lower annual rates, depending on your profile and the lender.
The minimum-due trap
Paying only the minimum due keeps your account in good standing but lets the rest of the balance keep growing with interest. Over time that can become a large amount.
Options to consider
If you carry a card balance month after month, you could look at moving it to a lower-rate personal loan with a fixed EMI. Compare the total interest and any processing fees first. Your eligibility and the final rate depend on the lender.
This article is general information, not financial advice. Approval, rates and terms are decided by the lender.