Comparison
Balance Transfer vs Consolidation Loan
If you can clear the balance within the promotional period, the transfer wins. If you need three or more years, the fixed payoff date of a loan is worth the interest.
Option A
0% balance transfer
In favour
- No interest during the promotional window
- Fee is usually 3–5%, cheaper than a year of card interest
- Fast to arrange
Against
- Promotional rate ends, often above the original APR
- Requires good credit to qualify
- Easy to keep spending on the cleared card
vs
Option B
Consolidation loan
In favour
- Fixed rate and a fixed payoff date
- One payment instead of several
- No promotional cliff
Against
- Rate is higher than 0%
- Origination fee reduces the proceeds
- Longer terms can cost more overall
Settle it
Balance Transfer Savings Calculator
saving = interest if you stay − (interest after transfer + transfer fee)
Estimates, not advice. Every figure here is produced from the inputs you enter and the formula printed on the page. Rules differ by state, carrier, lender and contract, so use these numbers to prepare for a conversation with a qualified professional rather than to replace one. See our full disclaimer.