Rant: I had to pick between a balance transfer and a personal loan to fix my credit card mess

Back in 2020, I had about $8,000 spread across two cards with crazy high interest. My choices were a 0% balance transfer with a 3% fee, or a personal loan from my credit union at 11% interest. I went with the loan because I didn't trust myself not to run the cards back up after a transfer. It took me 3 years of strict payments, but my credit score jumped from 620 to 720. Has anyone else gone the loan route and found it kept them more honest?

3 comments

3 Comments

harper_burns5914d ago

That loan forced me to pay it off, which the transfer card never would have done.

kevin_lane14d ago

Yeah, that forced payment structure is the whole point. I set mine up with auto pay from my checking account so I never even saw the money. @dianawilson, you gotta treat the transfer card the same way, set a real monthly payment and stick to it, or it just becomes another piece of clutter.

dianawilson14d ago

Wait, you actually paid off a whole loan? That's wild. My balance transfer card just collects dust next to the couch change.