The content is accurate at the time of publication and is subject to change.
If you consider using a 0% intro APR credit card such as the Wells Fargo Reflect® Card that offers one of the longest introductory APR offers on purchases and qualifying balance transfers on the market: a 0% introductory APR for 21 months from account opening. It's crucial to make at least the minimum payment each month to maintain the 0% intro APR and avoid penalty fees. Missing a payment or making a late payment could result in losing the promotional rate, causing interest charges to be applied to the unpaid balance.
The minimum payment is usually calculated as a flat amount, your statement balance or 1% to 3% of the new balance. Let's say your minimum payment is 2% of your balance (which is $15,000) during the 0% introductory period, then you would owe a minimum monthly payment of $300.
Once the introductory APR period is up, the interest rate will revert to the standard APR you agreed to in your card agreement. That means if you still have a balance at the end of the introductory period, it will begin accruing interest at the normal rate. If you pay the minimum payment, after the intro period ends, you will have $8,700 left to pay. If you continue to pay $300 with the 18% (as an example) interest rate, you will pay off your debt in 38 months, assuming you do not use the card and not increase your balance.
As an option, after the intro period on the Wells Fargo Reflect® Card is over, you may want to consider transferring the remaining balance to a balance transfer card. You might want to consider the Discover it® Cash Back. The card comes with a low intro APR on balance transfers. There is a 3% intro balance transfer fee, then up to 5% on future balance transfers (assuming you transfer $8,700, the fee will be $261). To pay the full balance with no interest, your monthly payment will be around $598.
You might also consider applying for a personal loan instead of a credit card. On a loan, your monthly payments depend on several factors, including the interest rate on your loan (which is highly dependent on your credit score), your loan term, and your principal loan balance.
The most convenient way to apply for a loan is online. Many lenders allow borrowers to pre-qualify on their websites. Pre-qualifying for a personal loan gives you a preview of estimated rates, monthly payments, and terms before you submit a formal application. For example, Experian® Personal Loans can help match you with personalized loan offers based on your FICO® Score.
Let's say you took out a loan for the remaining amount of $8,700 with an average APR of 12.38% and a 36-month repayment timeline. Your monthly payment will be $291. Please note that this is just an example, and final rates and payments will depend on your creditworthiness and the terms of the loan you choose.
Once you've selected an option with the rate, term, and features that best fit your needs, it's time to complete the application. After you're approved, carefully read and sign the loan agreement, which lays out the loan amount, APR, and terms. The lender will disburse funds once the loan agreement has been signed.