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I am looking for a short-term loan in the amount of $15k to buy some household items.

I will be able to return the money in full by 3 months

I have a credit score of 760+.

Currently, I am seeing two options:

  1. Putting the money on my credit cards (I have APRs of around 11% on my cards and a total credit line of $30k on three cards)

  2. Use balance transfer on my cards. I can get 0% APR but there's a 3% transfer fee.

Now my questions are:

  • Which of the above two options will cost less if I return the money in three months and in full?

  • Is there any other option that you may suggest for getting such a loan and pay even less total interest (again conditioned that it is a short-term loan and I can repay in 3 months)

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Also talk to your bank(s) or credit union(s); first one of mine I looked at offers an unsecured loan at 7% variable, and a signature loan at 7.5% fixed, no hidden costs on either. You might do better.

Also check store credit. Sears used to offer 1-year-0% financing on appliances if you signed up for the store's card at the time of purchase, and if you have the discipline to reliably pay it off before interest hits that's a hard deal to best. Other stores have offered something similar for major purchases of this sort; do some homework to find out who. (I bought my fridge that way, paying it in month 10.) The "catch" is that many people get distracted and do wind up paying interest, and the store hopes that having an account with them will encourage you to shop there more often.)

  • Thanks. Here is a general question: How do I find the interest I pay with min payment in X months knowing my APR? If my APR is y percent, is it right to deduce that I pay X*y/12 percent interest in the first year and in X months? – user622368 Nov 28 '15 at 22:09

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