Which describes the difference between a personal loan and a credit card?

A personal loan provides a lump sum that the borrower repays over time. A credit card instead gives the cardholder a borrowing limit, and they can borrow up to that maximum as they make purchases. So the correct choice is “Personal loans offer lump sums of money, while credit cards set a maximum amount a person can borrow.”

AI-written and checked against the verified answer.