What is the difference between loan and credit card interest rates?

Interest calculations and methods are determined by each state's laws, but it is safe to say that the general differences include the following points: * •credit cards are generally revolving debt, meaning you can borrow and repay over and over. * a personal loan is an installment where you borrow once and repay the debt over a period of time, reducing the debt with each payment * credit cards can take many years to repay in only minimal payments are made. Personal loans should payoff sooner than a credit card of a similar amount. * because the two debts have different purposes, perhaps security and risks to the lender, they have different rates * interest on a credit card is generally based on the balance owing during a given month. It may also allow repayment in full in a very short period of time with no interest charge. Credit cards also often have annual fees that personal loans do not. * interest on a personal loan is generally amortized and is based on the principal outstanding, which should decline with every payment.