Torn between a balance transfer and a personal loan for $4,200 of credit card debt

I had to decide last month between opening a new balance transfer card or getting a personal loan from my credit union to cover $4,200 I racked up on my Capital One card after the holidays. I went with the personal loan at 9.8% APR because I didn't want another hard inquiry on my report right away. It's working out okay so far but the monthly payment is tighter than I thought, and I'm kicking myself for not just paying it down slower. Has anyone else here picked a loan over a balance transfer and regretted it or been glad they did?

2 comments

2 Comments

sage521mo ago

Your credit union rate is actually decent for a personal loan, most of them are way higher than that. I think the sneaky thing nobody mentions is balance transfer checks often have ongoing fees on each transaction and you lose the 0% if you're late even once.

troy_owens1mo ago

You lose the 0% if you're late even once" is super true and it's wild how they bury that in the fine print. Speaking of fine print, I once got a "0% financing" offer on a couch from a furniture store. Turns out it was deferred interest, so if I was late one single payment they'd hit me with all the interest from day one. I paid it off early thank goodness but man, that's a trap.