 TITLE: Should I Pay Off My Credit Card With a Personal Loan? CONTENT: Is Personal Loan Debt Better Than Credit Card Debt?\n---------------------------------------------------\nPersonal loans and credit cards can impact your credit score positively if you make payments on time—and negatively if you don't. When you use credit cards, it's best to keep your total balance below 30% of your total credit limit, and the lower the better. Maintaining low balances will reduce your credit utilization ratio, which is the second most important factor in your credit score after payment history.\nBut there are some significant differences between personal loans and credit card debt. Personal loans are a type of installment debt, which means you'll make the same size payment each month without the flexibility to pay less. Personal loans also often come with origination fees, but their interest rates may be lower than what you'd receive on credit cards.\nBy contrast, credit card debt is revolving debt. You can carry a balance and make smaller monthly payments as your budget dictates, as long as you pay the minimum your issuer requires each month. But credit cards charge late fees and, potentially, annual fees, along with higher interest rates than most personal loans. Plus, they may encourage you to spend more, knowing you have a credit limit you can charge up to. END