Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Cards
Profile Image

Question By
Hottercold

0 Contributions
0 People Helped
Loan payoff with credit card?
Good afternoon, I have a 2 part question for you all.
#1 I have a Tool loan at about $9500 and pay $300 a month at a ridiculous 27% APR which translates to about $16,000 over the course of the loan. I want to get a low APR/No interest for 12 months credit card and try and pay it off in 2 years. I have 2 credit cards right now both from Capital One. one is a CL of $4500 and the other is a CL of $18,000. I have no balance.Would it be worth it to get the Discover card and pay off the loan with it but increasing my utilization at 35% or continuing to pay the loan.All my credit scores range from 690-711 and I make $120,00 but I had a chapter 13 bankruptcy discharge 2 years ago and don't want to hurt my credit.I barely notice the $300 loan but it's just really bothering me with the high interest but it doesn't seem to affect my credit negatively.

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
5038 Contributions
1131 People Helped

Financially, it would make sense to save some money as long as Discover gives you a line high enough to cover the balance and leave a cushion so that you are not maxing out the card. Credit wise, your plan will most likely cause a negative impact to your credit as you will be opening a new account, closing an old one and putting a large balance on a credit card. If you don't think you will need to apply for credit over the next year, then I would say consider it, but if you think you may need to app for credit in the coming months for something, then I may stay away from the idea.

Top Contributor
675 Contributions
353 People Helped

Your scores are ok, I would app for a Citi Diamond they have a 21 month 0% or chase slate the have a 15 month 0%.  Those are probable the two best 0% cards out there.  As TTU said above it might hurt your score to close the loan but "Mix" of credit is only 10% of your score and I would not pay $16K for the few points that it might give you. 

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.