Had to choose between a high-interest personal loan or maxing out a card for a plumbing van repair

My work van's transmission went out in Phoenix last month, and the quote was $4,200. I had the choice of taking a 24% personal loan from my bank or putting it all on a card with a $5,000 limit. I went with the loan to keep my credit utilization low, and my FICO score only dropped 12 points instead of the big hit I was worried about. Anyone have a better move for a similar emergency cost?

2 comments

2 Comments

butler.brian1mo ago

Honestly, that sounds like a win to me.

wyatt7711mo ago

So you paid a 24% rate just to keep a number on a website happy? Brian's right, it's a win, but man, that's a pricey win. Next time maybe just sell a kidney, I hear the market's decent.