Can I use a 0% credit card to pay off a 16.82% personal loan to save $5k in interest?

Yes, if you qualify for a 0% balance transfer card with a sufficient promotional period (15-21 months) and can pay off the transferred balance within that window. The 16.82% personal loan APR generates significant interest; transferring to 0% saves that interest minus the transfer fee (3-5% upfront). On a $20,000 balance, the math saves $4,000+ over 18 months even after the transfer fee.

The math. $20,000 personal loan at 16.82% APR with 36 months remaining costs about $5,500 in interest. Transferring to a 0% card with a 5% transfer fee costs $1,000 upfront. If you pay the $20,000 within the 18-21 month promo period, you save $4,500 in interest. The math is dramatically in favor of the transfer.

The personal-loan-to-credit-card transfer. Some balance transfer cards explicitly allow transferring personal loan balances. Major issuers offering this: Citi (Diamond Preferred), Wells Fargo (Reflect), Discover (it Balance Transfer), Chase (Slate Edge in some cases). Verify before applying.

Required credit score. Balance transfer cards typically require 670+ for approval and 700+ for the longest 0% promo periods. If your score is below 670, consider alternative consolidation methods.

Credit limit considerations. The new card needs a limit large enough to absorb the $20,000 transfer plus the transfer fee. Card issuers typically extend limits of $5,000-$30,000 to qualified applicants. If your initial limit is below the loan balance, you can transfer only what fits.

Required monthly payment. To pay off $20,000 within an 18-month promo period, the monthly payment is $1,111. Within 21 months, $952. Calculate this and verify your cash flow supports it. If you cannot make the required payment, the transfer just delays the problem.

Hard inquiry impact. Applying creates a hard inquiry (5-10 point drop) and a new account (5-10 point drop). Combined drop typically 15-25 points. Recovery within 6-12 months. The score impact is offset by lower utilization once the personal loan balance moves to a much higher credit limit.

If you cannot pay it off. If your projected payoff timeline exceeds the promo period, consider a longer-term solution. A debt management plan through a nonprofit credit counselor can consolidate at 6-9% APR with a structured payoff.