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?

4 comments

4 Comments

harper_burns592mo ago

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

emma_jones4d ago

Who says a loan is really that much better though, @harper_burns59? I've seen plenty of people get stuck with debt they didn't plan for either way. A transfer card can work just fine if you actually set a payoff date in stone instead of treating it like free money. Most folks just blame the tool instead of their own spending habits. It's not like the loan company is doing you a favor by taking your money faster.

kevin_lane2mo 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.

dianawilson2mo ago

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