Taking out a personal loan to pay off CC

[mystikal1]

Matt, I still say pay down the balance as much as you can. The score drop will not last forever, unless SO keeps charging to the max on all cards.

[mystikal1]

Every app spree will change your score, HP...AAoA...in time they heal nicely because of the new CL and lower UTL. I am not as informed as others on this board just giving you my experiences.

[Anonymous]

Use up the 0% APR until it expires. Personal loans are for people who don't have 0 APR and those loans are generally only 2-3 points lower than the actual credit card APR, unless you get a super duper offer from your own bank/CU. Also, it's for people who have multiple maxed lines, not one or two.

[Anonymous]

Okay thank you for the information. We were just really concerned when it went from about 700 to 670 it seemed drastic considering she'd only ever seen about a 15 point change before.

[Anonymous]

The score doesn't matter if you're not rapping for anything significant soon. Even if you are planning to get another card for a BT offer next year when the 0% expires, a 680-700 score is more than enough to get a lot of BT offers approved. Pay it down ASAP before April to pay as little interest as possible (I know you don't mind the interest but you really should) and your scores will heal in no time. Utilization effects are very quick, they go as fast as they come once the % is down

[Anonymous]

We'll do what we can. But her interest rate is 10.49% so it's not horrible. I was just trying to say it's not a concern right now due to having 0 apr it's something we'll start to think about when the new year rolls around.

So you think if we make payments on it then it will raise her CS by those 30 points lost?

[Anonymous]

This form is all about credit, but saving money is more important. I would happily take a 30-point drop if I was paying 0% interest on all my loans.. hell right now I would take two hundred point drop.

Score should only concern you if you are after additional credit, or have accounts with Barclays… lol.

You have until April to see what your options are. in February if you stay the course your scores will be at a point where you can get an additional credit card with new 0% interest, and transfer what's left

[Aduke1122]

Unless I'm mistaken it's not so much one card having high UTI that would drop scores bc it goes by overall UTI so I doubt that was the reason for the drop. Idk i would say keep the 0 percent offer , unless her profile could benefit from having an installment loan I don't see where it would be worth it . If her profile is lacking installment loan then that could help her scores .

[SouthJamaica]

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@Anonymous wrote:
Hi,

So my SO has one CC with a balance of $6700 out of $7,000CL on the card.

This is pretty much the only card she has a balance on she was able to transfer all her balances from her other cards to this one because there was no balance transfer fee and it had a 0 apr promo for the first year.

The only thing is she needs at least a year to pay it off but in the meantime due to the high balance it will drag her credit down we think. Her total CL is $24k and total balances are about $7.5k with that one card holding a high balance.

What do you think is the best option pay off the balance over the year leaving it on the card or taking a personal loan and paying it? (Her CS is about 675 was 690 but had a few inquiries and high balance recently).

Thanks!

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IMHO just keep paying it down as fast as possible.

[Anonymous]

Yes. You are obsessing far too much over a measly 30 points when she isn't even going to be credit seeking for a while. Credit is long term, don't let the short term get you in a twist