Which describes the difference between a personal loan and a credit card? Credit cards offer lump sums of money, while personal loans set a maximum amount a person can borrow. Credit cards are secured loans for large amounts, while personal loans are unsecured for small purchases. Personal loans offer lump sums of money, while credit cards set a maximum amount a person can borrow. Personal loans are secured for small purchases, while credit cards are unsecured loans for large amounts.