0% Credit Card vs Personal Loan — Which Costs Less?
0% balance transfer cards look free — but the transfer fee, end of the 0% period and credit score impact change the maths.
For £5,000 of credit card debt you want to clear over 2 years: a 0% balance transfer (3% fee, 24 months 0%) costs £150 in fees. A 7.9% personal loan over 2 years costs ~£420 in interest. Card wins — if you actually clear it in 24 months.
When the loan wins
You need more than ~30 months to clear it (most 0% deals top out at 30 months).
Your credit score is mid-tier — you'll get a 3.5% fee card, not the 0%/3% one.
You like the discipline of a fixed monthly payment that clears the debt by a set date.
Watch the end of the 0% period
Most balance-transfer cards revert to 22–25% APR. If you have £2,000 left when the offer ends, you'll pay £40+ a month in interest alone.
Enter your current balance, APR and monthly payment to see how long it will take to clear and how much interest you'll pay along the way.
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