What is the difference between a credit card and a loan?

A personal loan and a credit card are similar in that the bank approves a certain amount for the customer, which they can spend, for example, on purchases.

The main advantage of a credit card is the availability of an interest-free (grace) period, during which you can use the bank's money within the credit limit and not pay any interest for it. For a personal loan, interest accrues from the first day of using the funds.

Another difference is that for a credit card, the payments made restore the credit limit, and this money becomes available again for use. For a personal loan, payments only reduce the amount of debt, and the credit agreement has a fixed term.