When you need money fast, what’s the smartest way to get it?

You know, an unexpected expense, mishap, or a large purchase that requires immediate cash. You're cruising along, adding money into your savings, when a sudden setback requires a chunk of cash.

The ideal scenario would be having an emergency fund to cover this type of cost. But if you don't and the unexpected happens, what's best: tapping a credit card for cash or getting a quick personal loan? Here’s what to know.

Before we get into detail, this table provides an at-a-glance look at how personal loans and credit cards differ. Gaining insight into how each financial product is structured can help you decide which is better for you in an emergency.

Do you need a lump sum of money, or will this be an ongoing expense? The best personal loans are easy to apply for, provide quick funding, and offer thousands of dollars in one transaction. A lump-sum loan can be useful if you know exactly what your emergency expense will cost. Plus, personal loans have a set repayment period, so you know exactly how long it will take to pay off your balance.

By contrast, a credit card could be better if your financial need is ongoing and you aren’t sure exactly how much it will cost. Credit cards offer a revolving line that you can spend against, repay, and reuse as needed. In this sense, they’re a bit more flexible than personal loans.

Personal loans typically have a lower interest rate than credit cards, which is especially true if you have excellent credit. You’re likely to save on interest costs over time by opting for a personal loan versus a credit card for an emergency expense. A lower rate could also make it easier to pay down your balance faster, as you won’t be as bogged down by high interest charges adding up.

We may see credit card interest rates run lower one day, but because they generally start with higher annual percentage rates (APRs) than personal loans, credit cards are often the more expensive option.

Besides having relatively low rates, personal loans typically have fixed interest rates, too. This means that after you sign your loan paperwork, your interest rate will never change. A fixed rate is beneficial because you know how much your monthly payment will be, and that amount will always be the same.

Credit cards, on the other hand, generally have variable interest rates that can change over time. This means your rate could climb higher if you pay late, miss a payment, or the market rates increase.

Both credit cards and personal loans are typically unsecured debts, meaning you don't have to pledge something valuable to back the debt. That said, secured credit cards and personal loans do exist; they’re just not as common.

Secured personal loans may have slightly lower rates than their unsecured counterparts, so that’s something to keep in mind if you have a savings account, certificate of deposit, or paid-off car that you would like to use as collateral. But remember, if you default on a secured personal loan, you can lose the property you pledged as collateral. Secured credit cards typically have rates that are on par with unsecured cards.

Depending on the lender you work with, you might have to pay an upfront fee for your personal loan. Lenders often charge origination fees, which can range from 1% to 10% of your total loan amount.

For instance, if your lender charges a 5% origination fee on a $10,000 loan, that’s a $500 up-front cost. Most lenders will deduct the fee from your total loan balance, leaving you with $9,500 in available cash. Some personal loans may also have prepayment penalties if you decide to pay them off before your term is up, though they’re not very common.

Credit cards also have their fair share of fees, including annual fees, late fees, and foreign transaction fees. Annual fees vary depending on the card you choose, ranging from $0 to more than $700 if you opt for a premium card. Late payment fees can be as high as $40, and foreign transaction fees are typically up to 3% of your total charge if you use your card abroad.

Personal loans offer predictability, which can provide some peace of mind if you’re on shaky financial ground. These loans have fixed rates and set repayment terms, so you’ll be able to budget for your monthly payments without worrying about them increasing. Unlike credit cards, personal loans also offer lower rates, especially if you have excellent credit.

Credit cards, on the other hand, give you access to a revolving credit line. This flexibility is useful if your costs are ongoing. You can also earn rewards from your spending with certain cards. For example, you might get points you can use for travel or cash back that can offset your costs. Some travel cards also offer valuable credits, trip insurance, and other perks. You might also be able to get a 0% introductory APR with certain cards, though you’ll likely need excellent credit to qualify.

A personal loan can be the right choice if you:

• Want a low rate

• Have at least fair credit

• Prefer a lump-sum loan

• Want predictable monthly payments

Compare loan options and prequalify with different lenders, as doing so will give you insight into your estimated rate, repayment term, and monthly payment amount. Prequalifying won’t impact your credit score, as it typically only requires a soft credit check. Formally applying for a personal loan will result in a hard credit check and hurt your credit score by a few points.

A credit card could be the right choice if you:

• Don’t know exactly what your emergency expense will cost

• Expect ongoing costs

• Can qualify for a card with a 0% introductory APR

You can also prequalify for some credit cards, as you would with a personal loan. This can give you insight into your likelihood of qualifying for a certain card. Note that not all credit card issuers offer a prequalification option.

This article was edited by Alicia Hahn.