Should I use loans or credit cards to fund my startup?

Whenever you borrow money to start a business, you're taking a risk. The advantage to using a credit card is that you get access to capital now--no business plan or collateral required. The disadvantage is that credit card interest rates are typically higher than interest on traditional bank loans and credit lines and, if your business takes a while to ramp up, you could get stuck with some hefty monthly payments. My advice is to raise the startup capital you need from friends and relatives and wait until your business is cash flow positive before taking on debt.