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Paying off a loan tradeline with a balance transfer?

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New Contributor

Paying off a loan tradeline with a balance transfer?

Hi all! Normally I would never even consider this as an option, but I've got a student loan tradeline so close to being gone and done with I am wondering if this is a good option for me.

 

I currently have a student loan tradeline sitting at ~$1,800 with a 6.55% interest rate. I just got my tax return and I am planning on throwing $1,000 at this tradeline specifically, bringing the balance down to $800 and some change.

 

With barclays nerfing my beloved sallie mae mastercard, I have been looking for a use for the new card they are replacing it with and I think I may have found one. I have a balance transfer offer on the card for 0% interest until April 2018. Plus it only has a transfer fee of 1%. So if I use this balance transfer, the fee wouldn't outweigh the amount I'm saving in interest, if I'm figuring this correctly.

 

To pay it off before the 0% is up, I'd have to pay about $67 per month, which I am pretty sure I could do in addition to the regular $255 I pay toward my student loans now--and by paying off that tradeline, wouldn't more of my payment be allocated to my other 8 tradelines? (They are all serviced by Navient so I make one lump sum payment per month, if that matters).

 

I just want to get some opinions before I do this--normally I wouldn't advocate for replacing debt with different debt, but in this case I think it makes sense. Is my reasoning right?

Paypal MC - $7,200 (12/13) | TJX MC - $10,000 (5/14) | Torrid - $3,000 (7/14) | Discover IT - $11,000 (11/14) | AMEX BCE - $5,000 (11/14) | Victoria's Secret - $2,850 (6/15) | Barclays Rewards MC - $10,800 (7/15) | AMEX ED - $7,500 (9/15) | Chase Freedom - $3,500 (6/16) | Maurices - $1,000 (6/16) | Citi Double Cash - $6,300 (7/16) | Ulta Rewards MC - $2,250 (7/16) | Chase Freedom Unlimited - $4,000 (4/17) | David's Bridal - $3,500 (11/19) | Capital One SavorOne - $8,000 (1/20)
CU Auto Loan - $10,684 - 60 Months @ 2.14%
Federal Student Loan - $28,218/$32,000 - Payoff Date: 12/2023
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2 REPLIES 2
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New Contributor

Re: Paying off a loan tradeline with a balance transfer?

Bump?
Paypal MC - $7,200 (12/13) | TJX MC - $10,000 (5/14) | Torrid - $3,000 (7/14) | Discover IT - $11,000 (11/14) | AMEX BCE - $5,000 (11/14) | Victoria's Secret - $2,850 (6/15) | Barclays Rewards MC - $10,800 (7/15) | AMEX ED - $7,500 (9/15) | Chase Freedom - $3,500 (6/16) | Maurices - $1,000 (6/16) | Citi Double Cash - $6,300 (7/16) | Ulta Rewards MC - $2,250 (7/16) | Chase Freedom Unlimited - $4,000 (4/17) | David's Bridal - $3,500 (11/19) | Capital One SavorOne - $8,000 (1/20)
CU Auto Loan - $10,684 - 60 Months @ 2.14%
Federal Student Loan - $28,218/$32,000 - Payoff Date: 12/2023
Message 2 of 3
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Regular Contributor

Re: Paying off a loan tradeline with a balance transfer?

im bumping this for you.

 

hopefully it works out!

Starting Score (Oct '13): 473 (EX), Current Score: MyFICO EX: 713 EQ: 715 TU: 717, Goal Score: 740 & above. Capital One Quicksilver: $2250, Discover IT: $9500, Chase Amazon Store Card: $2600, Care Credit: $15000, Barclays Rewards: $1850 BCE: 20,000, PenFed Visa Sig: 7,000 NFCU cashRewards $24,600
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