| 0% balance transfer | Consolidation loan | |
|---|---|---|
| Interest | 0% for about 12–21 months, then the card's regular APR | Fixed rate for the whole term |
| Upfront cost | 3–5% transfer fee | 0–8% origination fee (sometimes none) |
| Payment | You choose, but must be big to finish in the promo | Fixed and predictable |
| How much it covers | Limited by your new card's limit | Often enough to pay off everything |
| Credit needed | Good (about 670+) | Fair to good (about 640+) |
| Biggest risk | Promo ends with a balance left | Running the paid-off cards back up |
Rule of thumb
If you can pay the balance off within the 0% window, the transfer is almost always cheaper. Divide the balance plus fee by the promo months: if that monthly number fits your budget, transfer. If it doesn't, a loan's fixed term and payment are usually the safer bet. Some people use both: transfer what they can clear quickly, and put the rest on a loan.
Full guides: balance transfers and consolidation loans. Try both in the payoff calculator.