Should I use personal loan to close credit card dues?

Short answer
Sometimes yes, but only if the personal loan is clearly cheaper and you stop using the card for a while. Otherwise, it becomes “new loan plus old habit”, which is risky.

When it makes sense

If you are paying only the minimum due or a revolving credit card balance, the interest is usually very high. A personal loan often has a lower interest rate and fixed EMIs. So converting messy, expensive card dues into one fixed EMI can reduce interest and give a clear end date. Simple life, one EMI, less stress. Thoda relief milta hai.

When it’s a bad idea

If you take a personal loan but continue spending on the same credit card, you will end up with two problems. Also, if your card dues are small and you can clear them in 1–2 months, a new loan may be overkill because of processing fees and longer tenure.

How to decide quickly

1. Compare total cost, not just EMI: personal loan interest + fees vs card interest if you take 6–12 months to repay
2. Check your EMI comfort: total EMIs should stay within a safe range of income
3. Close the loop: after taking the loan, pause card usage or reduce the limit so you don’t rebuild dues

Credit score angle

Clearing card dues can improve utilisation and help your credit profile. But multiple new loan enquiries can cause a small temporary dip. Net impact is usually positive if you repay on time.

Final takeaway

Use a personal loan to close credit card dues only when the card interest is killing you, and you have a clear plan to stop fresh card spending for some time. Numbers clear ho, discipline strong ho, tabhi it’s worth it.