Personal loans are a powerful financial resource for people that want to borrow money but don't want the high interest charges of credit cards. Although these two financial vehicles might seem a lot alike, the terms and conditions of these loan products are in fact, very different.

Personal loans have more controlled costs than credit cards. When you take out a personal loan, it's typically lent out in one lump sum and a set interest rate, whereas credit cards offer a line of revolving credit that is subject to higher, variable interest rates.

No matter what financial product you have in mind, your credit history will play a big part in determining what kind of personal loan or credit card you qualify for. If you have a long history of "on time" payments to creditors you'll have a greater chance of being approved and qualifying for better credit or loan rates. If you have spotty payments or little credit reporting history, you could be subject to paying higher rates or having your loan or credit request denied. This payment history is taken into account when calculating your credit score.

This credit score is then used to determine your overall credit worthiness. To get a personal loan with bad credit, you will need to have a job and proof of income that proves your credit capacity and your ability to repay the debt. If your credit is good, finding a personal loan should be no harder than landing a new credit card.

When comparing personal loans, pay close attention to the terms. If you want your personal loan to be a good deal, you have to pay particular attention to account basics. For instance, the interest rate, penalty fees, and any other important concepts must be understood before you enter into an arrangement that you later regret. This is especially true when applying for an instant personal loan. Remeber, the cheapest personal loan can save you a lot of money in the long run on rates and fees.