The rates you're comparing
| Product | Typical rate | Source |
|---|---|---|
| Credit card (all accounts) | 20.94% | Federal Reserve G.19, Q2 2026 |
| Credit card (weekly average) | 19.63% | Bankrate, Sept. 30, 2026 |
| 24-month personal loan | 11.86% | Federal Reserve G.19, Q2 2026 |
| Personal loan (700 FICO, $5,000, 3 years) | 12.53% | Bankrate, Sept. 23, 2026 |
| Balance transfer card | 0% for 12–21 months, plus 3%–5% fee | Issuer terms |
Bankrate's personal loan range runs from as low as 5.96% for excellent credit up to 36% for bad credit, so your own rate may differ a lot from the average.
Cost example: $6,000 of card debt
| Option | Monthly payment | Total interest and fees |
|---|---|---|
| Keep it on a 19.63% card, paid over 24 months | About $304 | About $1,303 |
| Personal loan at 11.86%, 24 months | About $282 | About $769 |
| Personal loan at 12.53%, 36 months | About $201 | About $1,229 |
| 21-month 0% card, 5% fee | $300 | $300 |
The 0% card wins clearly, but only if you actually pay $300 a month. The 36-month loan has the lowest payment but costs more in total because you're paying interest for longer.
When a balance transfer card wins
- You can pay off the full balance (plus fee) before the promo ends.
- You have good to excellent credit, which most 21-month cards require.
- The debt fits within one card's limit, including the fee.
- You're disciplined about not adding new charges.
Compare offers on our best balance transfer cards page and plan payments with the payoff guide.
When a personal loan wins
- You need more than about 21 months. If you pay $200 a month on a $6,300 transferred balance, $2,100 is still left when a 21-month promo ends, and it starts accruing interest at the card's regular rate.
- You want certainty. A loan has a fixed rate, fixed payment and fixed end date, with no rate jump.
- Your debt is larger than a card limit, or spread across cards from several issuers.
- You were turned down for a card. See balance transfer denied for other options.
Quick decision guide
| Your situation | Better fit |
|---|---|
| Can pay off within 21 months, good credit | 0% balance transfer card |
| Need 2–3 years | Personal loan |
| Debt exceeds likely card limit | Personal loan, or transfer plus loan |
| Want a fixed end date and payment | Personal loan |
| Want to keep a card for rewards afterward | Balance transfer card with rewards |
Either way, the plan only works if you stop adding to the old card. Once it's at zero, keep it open but unused.
Risks on each side
Balance transfer card: the rate reverts, usually to roughly 17%–29% variable, on whatever's left. A payment more than 60 days late can also end the promo early. And the freed-up limit on your old card makes it easy to rack up new debt.
Personal loan: a rate near the top of Bankrate's range can cost more than you're paying now, and a longer term adds interest. Compare the APR and total cost, not just the payment.
Both involve a hard inquiry. Read how a transfer affects your credit for details.
A hybrid approach
Some people transfer what they can repay in the promo and put the rest on a personal loan. Payments above the minimum on a card go to the highest-APR balance first, so keep new purchases off the transfer card. Rates and offers change, so check current terms with the lender or issuer before you commit. For more on using cards wisely, see our credit cards hub.
Frequently Asked Questions
Usually not if you can repay within the 0% period, since the transfer costs only the 3%–5% fee. A loan is often cheaper if you'd otherwise carry a balance past the promo.
Bankrate's average was 12.53% as of September 23, 2026, for a 700 FICO borrower. The Federal Reserve reported 11.86% on 24-month bank loans in Q2 2026.
Yes. Some borrowers transfer the portion they can repay during the promo and consolidate the rest with a fixed-rate loan.
Both add a hard inquiry and a new account. Either can help over time by lowering card utilization and building on-time payment history.
Most charge a one-time fee of 3%–5% of the amount transferred, with a $5 minimum. Some credit unions, including Navy Federal, charge none.
G.19 Consumer Credit — Federal Reserve
Current credit card interest rates — Bankrate
Average personal loan rates — Bankrate
What is a balance transfer — Forbes Advisor
Regulation Z §1026.55, limits on increasing APRs — CFPB
Regulation Z §1026.53, allocation of payments — CFPB
Card terms, rates and fees change often and APRs are variable. Information was checked in October 2026; confirm current terms on the issuer's website before applying. MoneyVerge may be compensated by some card issuers; this does not affect our assessments.