24-month personal loans11.86%Commercial-bank average, May 2026.
Credit cards, all accounts20.94%Commercial-bank average, May 2026.
Cards assessed interest22.15%Commercial-bank average, May 2026.
Where a personal loan has the edge
A personal loan can be better for a one-time amount when you want a fixed payment and an explicit end date. The rate you qualify for still matters, and origination fees can reduce the amount you receive.
Where a credit card has the edge
A card provides revolving access and can be convenient for smaller or uncertain expenses. If you pay the statement balance in full, purchase interest may be avoided under the card’s grace-period rules; if you carry a balance, the cost can rise quickly.
Do not compare averages to an actual offer
Federal Reserve averages are market context, not personal quotes. The decision should be based on the APR, fees, term and payment attached to the actual credit you are offered.
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A borrowing decision is easier to judge when you compare the monthly payment with the total cost.
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Sources checked for this page
- Federal Reserve G.19 consumer credit · Primary source · Checked 2026-08-25
- Discover personal-loan glossary · Primary source · Checked 2026-08-25