But for larger balances or a major expense, a fixed-rate personal loan often becomes the smarter tool for securing a more predictable payoff timeline.

BHG Financial offers unsecured personal loans, funded in a lump sum and with fixed monthly payments. That’s significantly different from a credit card, which gives users access to revolving credit for ongoing purchases with a variable interest rate and fluctuating payment amounts.

Key TAKEAWAY

If you only need short-term spending and can pay in full or take advantage of a 0% promo, a credit card can be a better option.
Choose a personal loan through BHG Financial for large balances you'll pay down over years in fixed monthly payments.
If you're carrying high-interest credit card balances across multiple accounts, a debt consolidation loan may help simplify repayment with one monthly payment, a fixed rate, and a clear payoff timeline.

BHG Financial vs. a credit card

Personal loans and credit cards solve different problems. A personal loan through BHG Financial is a fixed-rate installment product designed for large, one-time financing needs. A credit card is a revolving line of credit built for flexibility and ongoing spending.

The right fit depends on how much you need, how long repayment will take, and how much rate certainty matters to your monthly budget.

	Personal loan through BHG Financial	Credit card
Type of credit	Installment, fixed term	Revolving, open-ended line
Access to funds	Lump sum at funding	Ongoing draws up to credit limit
APR type	Fixed (6.49%–28.89%)¹	Variable; 0% intro promos may apply
Typical amounts/limits	Up to $250,000¹	Much lower; varies by issuer
Repayment structure	Fixed monthly payment; 2–10 years^1,2	Flexible; pay minimum or full balance
Fees	May include origination fee; no application fee	Annual, cash-advance fees; balance transfer (3%–5%)
Funding speed	As few as 5 days after approval³	Instant line once card is active
Best for	Debt consolidation, major expenses, home renovations; predictable multi-year payoff	Smaller short-term purchases; 0% promo payoff; rewards

Image is a representative example for illustrative purposes only and does not reflect actual customer information.

How each option works

Whether you're consolidating debt or covering everyday spending, knowing how each product works makes your choice clearer.

Here's a closer look at each option:

How a personal loan through BHG Financial works

A personal loan through BHG Financial is a fixed-rate, fixed-term installment loan: You receive a lump sum at funding, then repay it in equal monthly payments over a set term. Your rate and payment are locked in from day one. Even if market rates climb, what you owe each month stays the same.

Loan amounts are available up to $250,000¹, with terms from two to 10 years^1,2. These are unsecured loans, so no collateral is required.

Personal loans can help free up cash flow for consolidating high-interest credit card balances, funding home improvements, and covering large one-time expenses.

The process starts with personal loan prequalification, which involves a soft credit check that does not affect your credit score.⁴ From there, you submit a full application, which triggers a hard inquiry once a loan is funded.

Approval decisions can come in as little as 24 hours³, and funds are available in as few as five days.³

How a credit card works

A credit card is a revolving line of credit, which means you can borrow up to a set limit, repay some or all of it each month, and your available credit replenishes as you pay it down. Unlike an installment loan, there's no fixed payoff date and no obligation to pay more than the minimum.

That flexibility comes with a tradeoff. When you carry a balance and make only the minimum payment, interest charges can compound month after month. As interest is added to your balance, a larger share of future payments may go toward interest instead of principal, which can extend your repayment timeline and increase the total cost of borrowing.

According to the 2026 BHG Financial Consumer Debt & Finances Survey, 38% of Americans with debt plan to make only minimum payments on their credit cards until the balance is gone—a strategy that can add years to repayment and substantially increase total interest costs.

However, that flexibility can work best when you're paying your balance in full each month or taking advantage of a 0% intro APR offer. If you carry a balance beyond the promotional period, interest costs can increase quickly. Because most credit cards have variable APRs, your rate may also rise when benchmark interest rates increase, making future payments less predictable and more difficult to budget for.

The Consumer Financial Protection Bureau (CFPB) found that the average APR margin on credit cards (the gap between what issuers charge cardholders and their own borrowing costs) reached an all-time high of 16.4% in 2024. That widening margin helped push total annual credit card interest charges to $160 billion.

Variable-rate debt adds up

Save more with a lower fixed rate personal loan

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When to choose a loan through BHG Financial or a credit card

Both products likely have a place in your financial toolkit. But the right one depends on the size of your balance and how long you'll need to repay it.

When to choose a personal loan through BHG Financial

A personal loan through BHG Financial is the stronger move when you need to borrow a large lump sum of money or if you’re looking to consolidate debt and need a fixed payoff date.

Signs a personal loan from BHG Financial beats a credit card for your situation:

Your combined credit card or high-interest debt totals $20,000 or more
You want one predictable payment and a defined payoff date
You need access to up to $250,000¹ to consolidate multiple debts, fund home improvements, or pay for a major expense
You want a fixed rate that won't increase if the prime rate rises
You're comfortable repaying your loan over multiple years and need extended terms to keep payments manageable

According to BHG internal survey data, 12% of respondents with debt already have or plan to use a debt consolidation loan, and people who planned to or currently do use a debt consolidation loan, feel more confident in their ability to keep up with their minimum payments.

When to choose a credit card

When the balance is small and you can pay it off quickly, a credit card often makes more sense.

Signs a credit card is the better choice include:

The balance is modest and you can realistically pay it off within the next payment cycle or within the 0% intro promo period (for a balance transfer card)
You pay your full statement balance monthly and want to earn credit card perks and rewards
You don't need a lump sum—you want flexible, ongoing access to a credit line
You're making a smaller purchase (under roughly $3,000) with a payoff horizon of a few months

Why borrowers choose BHG Financial for financing

Successful professionals often have more complex financial lives than traditional lending models account for. Multiple income streams, bonus compensation, business ownership, and competing financial priorities can make it difficult for a single credit score to tell the whole story.

That's why personal loans through BHG Financial are designed to look beyond a number. The underwriting process considers your broader financial profile, including income sources, professional history, goals, and overall creditworthiness.

For larger balances, debt consolidation, or major expenses that may take years to repay, a personal loan through BHG Financial offers greater predictability. Fixed rates, fixed monthly payments, and terms up to 10 years^1,2 can help simplify repayment, improve cash flow, and provide a clear path forward.

The right financing solution should support your goals—not create additional uncertainty. Whether you're consolidating debt, funding a major expense, or looking for a more structured repayment plan, understanding your options can help you make a confident decision.

Get your personalized loan options today—there’s no impact to your credit to check your rate.⁴

Get a predictable payment

Explore fixed-rate personal loan estimates today^†

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^† This is not a guaranteed offer of credit and is subject to credit approval.

Frequently asked questions (FAQs)

Which is cheaper, a personal loan through BHG Financial or a credit card?

For large balances you'll carry over multiple years, a personal loan through BHG Financial is typically less expensive than a variable-rate credit card.

Fixed APRs through BHG Financial range from 6.49% to 28.89%¹, while the average credit card APR on accounts carrying a balance was 21.52% in Q1 2026, according to Federal Reserve G.19 data.

For small balances you can pay off within a 0% intro promo period, a balance-transfer card may cost less, but only if you clear the balance before the promo ends.

Just remember to factor in origination fees on loans and balance-transfer fees (typically 3% to 5%) on cards when you're comparing total cost.

Can I get a BHG credit card without a loan?

No. BHG credit cards are available exclusively to existing BHG loan customers and are not offered to the general public. If you don't already have a BHG loan, you're comparing a personal loan through BHG Financial to a general-market credit card—not a BHG credit card.

What credit score do I need for a personal loan through BHG Financial?

Personal loans through BHG Financial require a minimum credit score of 640, but higher scores can improve the borrower's chances of approval and loan terms. The average BHG borrower carries a score of 730.

Is BHG Financial hard to get approved through?

BHG Financial looks at more than your credit score. The underwriting process considers your full financial profile, including income sources, professional history, debt-to-income picture, and overall creditworthiness.

The minimum score to qualify is 640, but the process is built for six-figure earners with complex finances, including those with multiple income streams or bonus-heavy compensation. That broader view often surfaces options standard lenders miss.

Can you pay off a personal loan through BHG Financial early?

Yes. Personal loans through BHG Financial typically don't include a prepayment penalty, meaning you can pay down or pay off your loan ahead of schedule without incurring extra fees. Confirm the terms in your specific loan agreement, as individual terms may vary.

How much would a $30,000 personal loan through BHG Financial cost monthly?

Estimated monthly payments for a $30,000 personal loan range from about $364 on a 10-year loan at 8% APR to $1,084 on a three-year loan at 18% APR. Monthly payments—and the total cost of the loan—vary widely based on your APR and term, which are determined by your creditworthiness and other factors.

When should I choose a loan instead of a credit card?

Choose a personal loan through BHG Financial when you're consolidating a large balance (up to $250,000¹) that will take more than a year or two to repay, when you want a fixed rate and a defined payoff date, or when you need more than a typical credit card limit allows.

A credit card is the better fit for smaller, short-term balances you can pay in full, and for everyday spending you pay off each month to earn rewards.

Not all solutions, loan amounts, rates or terms are available in all states.

Advertised rates are subject to change without notice.

¹ Terms subject to credit approval upon completion of an application. Loan sizes, interest rates, and loan terms vary based on the applicant's credit profile. Not all applicants will qualify for the lowest rate.  

² Personal Loan Repayment Example: A $60,000 personal loan with a 7-year term and an APR of 17.06% would require 84 monthly payments of $1,191.38.

³ This is not a guaranteed offer of credit and is subject to credit approval.

⁴ There is no impact on your credit for applying. For personal loans, a complete credit history, which will appear as an inquiry on your credit report, will be performed upon acceptance and funding of the loan and may impact your credit.

Consumer loans funded by Pinnacle Bank, a Tennessee bank, or County Bank. Equal Housing Lenders. Equal Housing Lenders icon

For California Residents: Personal loans made or arranged pursuant to a California Financing Law license - Number 603G493.