Personal Loan vs Credit Card Calculator
Compare paying down debt with a credit card (Fed G.19 Q1 2026 avg 21.00% APR) vs consolidating into a fixed-term personal loan (avg 11.40% APR).
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How to use
- 1 Enter the debt amount you want to consolidate or finance (current credit card balance, etc.).
- 2 Enter payback period in months (typical 36-60 months for personal loans).
- 3 Enter personal loan APR (LendingTree avg 13.45% for 3-yr, 17.79% for 5-yr; better credit = lower).
- 4 Enter credit card APR (WalletHub Q1 2026 avg 22.11%, range 20-28%; check your specific cards).
- 5 Enter utilization % (100% = full balance carried; lower if you're paying down). Click Calculate to see total interest both ways and recommended option.
About Personal Loan vs Credit Card Calculator
FAQ
Q Personal loan or credit card for debt?
For credit 670+: personal loan (avg 13.45% 3-yr) almost always beats credit card (avg 22%+ APR). Saves $1,500-$2,500 on $10K consolidation. For sub-580 credit: personal loan APRs reach 30%+, comparable to cards — focus on debt avalanche instead.
Q What's the average personal loan APR?
13.45% for 3-year loans, 17.79% for 5-year loans (LendingTree May 2026). Range varies widely by credit score: excellent (760+) 7-12%, good (670-759) 12-20%, fair (580-669) 20-30%, poor (below 580) 28-36%.
Q How does debt consolidation work?
Take a personal loan to pay off all credit cards. Replace multiple variable revolving payments with one fixed amortizing payment over 3-5 years. Saves interest, breaks the minimum-payment trap, simplifies budgeting. Most successful when you don't use the cards again.
Q What is balance transfer 0% intro APR?
Credit card promo: transfer existing balance to new card with 0% APR for 12-21 months, plus 3-5% transfer fee. Math: $10K transferred at 4% fee = $400; saves vs $2,000+ in 24% APR interest over the promo period. Pay off before promo ends to avoid back-interest.
Q Should I get a HELOC instead?
HELOC at ~9% APR beats both personal loan and credit card if you have home equity. BUT puts your home at risk. Better for: home renovations, investments. WORSE for: consumer debt. If you can't pay back, you can lose your home.
Q How does personal loan affect my credit score?
SHORT TERM: hard inquiry drops score 5-10 pts; new account dings score; lower utilization on cards (after paying off) BOOSTS score 30-80 pts net. LONG TERM: positive payment history builds score over 6-24 months. Net usually +20 pts within a year.
Q Can I get a personal loan with bad credit?
YES — but at 25-35% APR. Lenders: Upgrade, Upstart, OneMain Financial, LendingPoint, Avant. Caution: payday loan alternative APRs even higher (200-400%). For sub-580 credit: BEFORE applying for any loan, work on credit repair via Experian Boost, dispute errors, pay down cards.
Q How much can I save with debt consolidation?
For $10,000 credit card debt at 24% (paying minimums = ~24-yr payoff with $11,500 interest): consolidate to 3-yr personal loan at 13.45% = $2,200 interest. Net savings: $9,300 + 21 years of payments. Major life-changing math for high earners trapped in revolving debt.
Official resources
LendingTree — Personal Loan Statistics 2026
LendingTree authoritative US personal loan statistics including APR averages by credit tier.
Bankrate — Average Personal Loan Rates
Bankrate weekly tracker of personal loan rates by credit score and lender.
Federal Reserve G.19 — Consumer Credit
Federal Reserve official credit card APR averages and consumer credit balance trends.
CFPB — Choosing the Right Loan
Consumer Financial Protection Bureau guide to comparing personal loans and credit card debt strategies.