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When taking out a personal loan to pay down credit card?

jdot457
Member

When taking out a personal loan to pay down credit card?

I have a $3k NFCU, my first unsecured card in over 10yrs with 2700 balance payment date is 12th.  I was wondering if i took out personal loan, how much would it decrease my score?

Ex:729,EQ:709, TU: 720

Currently i have $200 open sky, two $5k primary tradelines, self credit builder loan(recently received offer for self credit visa card), AU on my aunts two card $15k and $5k. Also was approved for $10k card which will be here on the 16th.

 

This card hasn't posted yet, since this is the 1st billing cycle. have 9% utilization on $30,800 credit limit. Which will be 33,800 after this card posts.

 

So is it better to take out a small loan to pay down the card before it posts or will it be ok since my credit limit has some cushion?

5 REPLIES 5
Jnbmom
Community Leader
Senior Contributor

Re: When taking out a personal loan to pay down credit card?


@jdot457 wrote:

I have a $3k NFCU, my first unsecured card in over 10yrs with 2700 balance payment date is 12th.  I was wondering if i took out personal loan, how much would it decrease my score?

Ex:729,EQ:709, TU: 720

Currently i have $200 open sky, two $5k primary tradelines, self credit builder loan(recently received offer for self credit visa card), AU on my aunts two card $15k and $5k. Also was approved for $10k card which will be here on the 16th.

 

This card hasn't posted yet, since this is the 1st billing cycle. have 9% utilization on $30,800 credit limit. Which will be 33,800 after this card posts.

 

So is it better to take out a small loan to pay down the card before it posts or will it be ok since my credit limit has some cushion?


Can you pay off the balance on the card?

 

I certainly would not get a loan "just to pay off before it posts"...............................................

EXP 758 TU 783 EQ 729
Message 2 of 6
M_Smart007
Epic Contributor

Re: When taking out a personal loan to pay down credit card?


@Jnbmom wrote:

@jdot457 wrote:

I have a $3k NFCU, my first unsecured card in over 10yrs with 2700 balance payment date is 12th.  I was wondering if i took out personal loan, how much would it decrease my score?

Ex:729,EQ:709, TU: 720

Currently i have $200 open sky, two $5k primary tradelines, self credit builder loan(recently received offer for self credit visa card), AU on my aunts two card $15k and $5k. Also was approved for $10k card which will be here on the 16th.

 

This card hasn't posted yet, since this is the 1st billing cycle. have 9% utilization on $30,800 credit limit. Which will be 33,800 after this card posts.

 

So is it better to take out a small loan to pay down the card before it posts or will it be ok since my credit limit has some cushion?


Can you pay off the balance on the card?

 

I certainly would not get a loan "just to pay off before it posts"...............................................


+1

Message 3 of 6
jdot457
Member

Re: When taking out a personal loan to pay down credit card?

No i cant but I've paid $1000 on it already... Just curious how much of a dip it would be due to my overall credit limit you think ?

Message 4 of 6
BrutalBodyShots
Super Contributor

Re: When taking out a personal loan to pay down credit card?

I think your question may be better answered in the understanding Fico scoring section of the forum.

 

How much the opening of a loan impacts your score(s) depends on many different profile factors.  Some of the include but are not limited to the presence of other open/closed loans on your CR, your overall before/after installment loan utilization, inquiries and age of accounts factors. 

 

Opening a loan to pay off $2700 in CC debt for which you already have $1000 to pay toward doesn't seem to really be necessary, IMO.  I can't imagine you'd save all too much on interest when looking at a sub-$2k dollar amount, but you'd have to work out the numbers.

Message 5 of 6
jdot457
Member

Re: When taking out a personal loan to pay down credit card?

Today was a great day. I went to my personal trainer class this morning. Great workout. My $10k Amex got shipped yesterday. Arrived today i paid off my NFCU card. Amen ☺


@BrutalBodyShots wrote:

I think your question may be better answered in the understanding Fico scoring section of the forum.

 

How much the opening of a loan impacts your score(s) depends on many different profile factors.  Some of the include but are not limited to the presence of other open/closed loans on your CR, your overall before/after installment loan utilization, inquiries and age of accounts factors. 

 

Opening a loan to pay off $2700 in CC debt for which you already have $1000 to pay toward doesn't seem to really be necessary, IMO.  I can't imagine you'd save all too much on interest when looking at a sub-$2k dollar amount, but you'd have to work out the numbers.


 

Message 6 of 6
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