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High Interest School Loans vs Low Interest Credit Card

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High Interest School Loans vs Low Interest Credit Card

If I pay off a high interest school loan with a low interest credit card will it hurt my credit score as my revolving debt to credit ratio increases?

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2 REPLIES
Regular Contributor

Re: High Interest School Loans vs Low Interest Credit Card

Depends on your credit card limit. You will wont to keep your utlization under 20% -30%. or it will effect your credit!

Starting FICO scores EX- 422 Feb/2013

NEW 12/13/13 FICO scores
Ex- 638, EQ- 658, TU- 646

Almost there Goal 660 across the board
Message 2 of 3
Frequent Contributor

Re: High Interest School Loans vs Low Interest Credit Card


e35 wrote:

Depends on your credit card limit. You will wont to keep your utlization under 20% -30%. or it will effect your credit!


It won't matter if the OP doesn't plan on applying for credit during that time but yes, don't go max out a credit card for that.

 

Personally, I'd say it depends on how much you owe as credit card companies can be unreliable. They might change the terms of your card overnight and for no reason etc. I'd do it only if I knew I would be able to pay off the balance fast but again, OP,  how much are you talking about?

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