"The better your credit score, the lower your rate," says Spencer Betts, CFP, financial advisor at Bickling Financial Services.
"Personal loans are generally lower rates than cards, and they are fully amortizing, so you commit to paying down your debt every month," says Renaud Laplanche, CEO and co-founder at Upgrade, a financial services company.
"If you are buying any item that can be used as collateral — a car, boat, house, etc. — you can typically get a better rate than a personal loan. The rate for a personal loan is normally higher because there is no asset or collateral for the loan," says Betts.. However, they still likely charge an initial transfer fee. So, you can compare the transfer costs against the overall interest costs to see if a personal loan or credit card balance transfer makes more sense.
"For small purchases, many retailers and merchants offer buy now, pay later options for clients that often come with 0% interest or in some cases low payments that fit a person's budget," says Miller.