Consolidating card debt

[Anonymous]

Looked for other threads before starting this one - but all seemed like they were related to consolidating student loan debt. 

Considering paying off $20k in 18% card debt with a 3yr bank loan at 15%.   - after running all the numbers looks like I'd save just under $4000.

Anyone else doing/have done something similar?  Trying to gauge whether the new account will have any adverse reactions.

[babygirl1256]

Will the "new" bank loan be a hard pull or a soft pull on your credit? Any new inquiry and/or new account has the potential to cause your credit score to experience a temporary decrease (adverse reaction) . . . At least that's what happened in my situation -but- after six months of positive reporting, my score recovered. 

[Anonymous]

Thanks!
It will be a hard pull on the final app. Prequal was soft pull. I know I'll get a small ding for the inquiry.  Right now I'm around 718 across all 3. Simulator shows about 780-790 across the board with the loan and card payoff. I guess the real questions are A) how accurate is the MyFICO simulator and B) does a closed-end loan affect AAofA?

[tcbofade]

Yes and Yes.

My question is why scoring bothers you here?

In your first post, you listed 4,000 reasons to run, not walk.

Finances > Ficos.

Good luck!

[Horseshoez]

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@Anonymous wrote:

Looked for other threads before starting this one - but all seemed like they were related to consolidating student loan debt. 

Considering paying off $20k in 18% card debt with a 3yr bank loan at 15%.   - after running all the numbers looks like I'd save just under $4000.

Anyone else doing/have done something similar?  Trying to gauge whether the new account will have any adverse reactions.

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A few comments and questions:

• Paying your $20,000 of credit card debt which accrues 18% interest over 3 years will incur about $6,030 in interest.
• Paying your $20,000 of credit card debt from a personal loan with 15% interest over 3 years will incur about $4,959 in interest.
• Where are you seeing $4,000 in savings?
• Have you looked into a credit union?  I'm thinking I've read recently folks here have been getting personal loans approved with interest rates in the 6% to 8% range.  If you land an 8% loan and pay it over 3 years, the interest incurred will only be about $2,562.

[Mr_Mojo_Risin]

The myFICO simulator is a mixed bag.

Some kind of trust it but seems most don't.

Yes, this loan will affect your AAOA.

As @tcbofade stated, finances over FICO.