If you are looking for a small cash loan between $500 and $10,000, you basically have two options; either choose a personal loan or opt for a credit card.

At Fair Go Finance we recommend a personal loan every time. Why? Here are 5 convincing reasons!


1. Personal Loans have an end date and are simple to understand.

Do you really want a small debt to stay with you FOREVER. This is the risk when you get a credit card, because you can pay it down, but then redraw it up again.

For people who struggle to budget, (let’s admit it – most of us!) credit cards are too tempting to keep using. On the other hand, if you take out a personal loan you simply pay it off, meaning it will eventually be repaid and closed.


2. Credit Cards are confusing!

When you get a credit card there are so many terms and conditions you need to understand. Statement date, statement period, statement due date, credit limit, available balance, payment due date, purchase interest rate, balance transfer interest rate, cash advance, interest free period – the list is exhausting!

Everyone is naturally drawn to the idea of “interest free” periods but so many of us get caught out when we can’t make the full payment. This consequently means you start paying interest. With Credit Cards it is too tempting to keep spending, something that is just not possible with a personal loan.

man pondering finances


3. A Fair Go Finance personal loan customer can receive great benefits.

At Fair Go Finance, if you have taken out a loan with us and kept timely payments, you will be eligible for our Mates Rates Program! Not only does this mean you can get a lower interest rate but also a great discount on your application fee.


4. Credit Cards can get stolen.

Sadly, most of us know how horrible it is to have your wallet stolen. If your credit card is stolen it means phone calls to the bank, cancelling accounts, re-organising direct debits and payment dates.

So if you need a small loan, opting for a personal loan not only keeps you on track with regular payments, but it just can’t get stolen!


5. Credit Cards can get out of hand. Watch out for Cash Advances.

Because credit cards are easy to use, it’s a common trap people fall into when they pile extra purchases or cash advances onto the card.

By deciding to take “cash” out of your credit card (a cash advance) you not only pay interest on it straight away but you also may get charged a fee for the privilege. Suddenly, the interest and fees can start mounting up and before you know it, even the minimum balance can become hard to make.

If your credit card repayments aren’t met, your credit report will be updated indicating you’ve not paid it on time, giving you “bad credit”.

Personal loans are designed so you get a lump sum payment into your bank account, and from that point on, you cannot draw any more but simply must make regular set payments until the loan is paid off.

By staying on top of your payments you consequently show good repayment history and avoid damaging your credit rating. So, based on all of these 5 important points….we hope you agree taking our a personal loan is a better option that taking out a credit card!

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Are you eligible to apply?


It can be expensive to borrow small amounts of money and borrowing may not solve your money problems.

Check your options before you borrow:
For more information about other options for managing bills and debts, ring 1800 007 007 from anywhere in Australia to talk to a free and independent financial counsellor.

Talk to your electricity, gas, phone or water provider to see if you can work out a payment plan.
If you are on government benefits, ask if you can receive an advance from Centrelink.

The Australian Government’s MoneySmart Website shows you how small amount loans work and suggests other options that may help you.

* This statement is an Australian Government requirement under the National Consumer Credit Protection Act 2009.