Reddit Users Say Temporary Credit Score Ding Is Better Than Staying Maxed Out — Expert Explains Why They're Right
No one wants to hurt their credit score by opening new accounts they don’t need.
But if you’ve got maxed-out credit cards, a temporary ding to your credit score may be a reasonable option. At least, that’s the opinion of a number of Reddit users.
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The Scenario
Do you know someone with $45,000 in credit card balances and $12,000 in personal loans, with minimum payments eating nearly all of their paycheck? That’s the scenario a 28-year-old librarian recently posted in r/personalfinance.
Reddit users offered lots of advice, but many of the replies had something in common. Almost nobody in the thread cared about protecting the original poster's credit score. They primarily focused on how to reduce the draconian cost of interest.
The Offered Advice
Most responses agreed that the original poster should act now and take concrete steps to address their debt situation. Some of the advice included building a real budget, dramatically reducing spending, listing the details of every debt, and using savings to pay down the highest-interest balance first.
Many posters went even further, suggesting balance transfers with 0% promotional-rate credit cards as a smart way to cut interest costs. Some noted that an upfront transfer fee is a better deal than paying 20% or more on a credit card.
Another commenter suggested calling the card companies, asking them for lower rates and mentioning that you’re considering a balance transfer as an option.
A striking number of replies went for the “nuclear option,” suggesting bankruptcy as a viable option. Some commenters actually described it not as a last resort but actually as a more responsible move, given the math.
Yet another reported using a nonprofit credit counseling agency to knock many of their credit cards down to a 0% interest rate, confiding that it was almost impossible to fund daily life while paying a 24% APR.
Each of those pathways would result in a hit to someone’s credit score. But not one commenter considered that to be the most important factor.
This line of thought is supported by Jay Zigmont, a certified financial planner and founder of Childfree Wealth. As Zigmont told U.S. News and World Report, “If you see a dip after paying a debt, just shrug it off. Keeping debt around is not worth it. Start focusing on your net worth and use that as a measure of your progress.”
Does the Math Back Them Up?
According to the Federal Reserve, the average interest rate on credit card accounts was 22.15% in the second quarter of 2026. At that rate, someone with $45,000 of revolving debt is looking at monthly interest charges of about $850. Against that, the cost of a balance transfer looks small.
Imagine you have a $5,000 balance on a credit card that charges a 25% APR. If you move that to a 0% balance transfer card, paying a 3% transfer fee, you’ll pay $150 upfront. But you’ll end up saving about $1,250 in interest over the following year alone, assuming minimum payments.
The Bottom Line
Any advice on Reddit should be taken with a grain of salt. But most of the posters on this specific thread didn’t offer reckless advice. Rather, many were simply sharing their positive experiences with handling debt that could be of benefit to someone else in the same scenario.
The bottom line for those with $45,000 in high-interest credit card debt is that it’s time to take action. Credit score inquiries only comprise 10% of a FICO credit score, and a credit inquiry stops having any effect at all within about a year. When compared with accumulating thousands of dollars of interest every year, a small credit score dip seems like a good trade.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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