A personal loan is an unsecured loan that can help you pay off existing credit card debt and cut your interest rate in half. Unlike a credit card, a personal loan is considered an installment loan. You may be able to save substantially on your monthly payment by replacing a high interest rate credit card debt with a lower interest rate personal loan. As a result, you may be able to improve your credit score because you are lowering your credit utilization ratio and also diversifying your types of debt.
Personal loans are more advantageous than credit card debt when you plan to pay off your balance over a period of more than one year.
Personal loans can also help with major purchases, major life events (engagement ring, moving, wedding or new baby), home repairs, a vehicle purchase or a vacation.