Obtaining Funds: Are Credit Cards Or Personal Loans Better?

Instant Loan Singapore, Instant Cash Loan Singapore

For Singaporeans, it’s a fact of life that the average cost of living in such a beautiful and developed country can be quite high these days. As such, it’s also not surprising that for the average Singaporean, a significant portion of their salary would likely be used solely for basic necessities, such as their rent or housing, bills, and daily consumable – leaving little for their savings or wants.

While with the many expenses, there are plenty of financing options to choose from for when you’re in a financial bind. Read on below as we discuss two significant financing options – credit cards and personal loans – and see which is better for you.

Credit cards

Its convenience and widespread acceptance by nearly every establishment on the island has made credit cards the most popular line of credit to date. Be it online or in physical stores, you’re certain to be able to pay for whatever you need with just a few clicks or a simple swipe of your card. On top of that, it comes with a myriad of perks and freebies (depending on your agency and its partners) and offers greater security compared to lugging around tons of cash.

However, credit cards do come with its own share of disadvantages: high processing fees, high interest rates, and higher chances of increased spending. As such, it’s important to be responsible when it comes to using credit cards.

Personal loans

Personal loans are short-term loans that you can use for any purpose you need, be it for personal reasons, business purposes, or emergencies. In addition, they are instant cash loans that are generally unsecured, which means borrowers need not provide collateral to be approved for the loan.

But to make up for the lack of collateral, legal moneylenders in Singapore and similar agencies need to determine your creditworthiness through other means. Your annual income and credit score, and history are amongst the primary factors that they use to assess whether you’ll be able to repay your loan or not. If you meet all their requirements and receive their approval, you’ll then be able to receive your cash within minutes or in a couple of business days at most.

Besides the near-instant access to your loaned cash, some of the benefits you can enjoy with a personal loan are cheap and fixed interest rates, access to bigger loans (depending on your income), and more flexible terms regarding loan tenure and rates.

Which should you go for

Both these types of credit shine in their respective areas and must be used accordingly with utmost discipline. Ideally, stick to paying for necessities with cash to avoid incurring unnecessary interest fees for non-key items and services.

Likewise, take on personal loans responsibly by making sure you can pay them off well before you apply for one. Taking small and short-term personal loans and paying them off as agreed can benefit your credit score greatly and allow you to apply for bigger loans down the line. And similar to credit cards, be mindful of what you spend your loan on and make certain that whatever it may be, it’ll be worth the interest you’re paying for.


Getting funds for your necessities these days is easier thanks to the universal availability of credit cards and personal loans in Singapore. Still, ensure you manage these outstanding payments carefully and responsibly to avoid affecting your finances.