It seems as though more and more people have been taking out personal loans and according to Experian, personal loans are growing at 11% annually faster than student loan or credit card debt. Personal loans now exceed $300 billion as of this year mostly because personal loans can help consolidate credit card debt or make funds available for for major projects. Compared to credit cards, personal loan interest rates can vary much more. This wider range of interest rates allows borrowers with good credit to get loans more affordably. Unlike credit cards, personal loans less frequently offer perks or rewards like cash back or points. If you are spending consistently on credit cards, you'll give up those rewards by consolidating the debt on a personal loan.
For borrowers with better credit, personal loans can add to your credit mix and reduce the the interest you pay for larger projects and other major expenses. Personal loans can really help save for people with good credit because of how risky credit cards have become.