Personal loan rates are generally lower than credit card rates, so consolidating could save you hundreds, or even thousands, of dollars in interest payments.
Using a personal loan to reduce debt can have a few benefits.
A personal loan offers some advantages over balance transfer cards.
Fixed payments ensure you’ll pay off debt on a set schedule.
Other options for borrowers with bad credit include secured or co-sign personal loans.
Some lenders say they have no minimum credit score requirements, but that does not mean they don’t check your credit report.
Knowing your credit profile before you apply can help set expectations.
A personal loan for debt consolidation can help eliminate debts faster and put you back on the right track.Creating a budget and starting a savings habit are small steps that could build a stronger financial future.If you don’t have an immediate need for cash, work on building your credit score.Once the introductory period expires, the rate on a balance transfer card is usually higher than on a personal loan.In addition to paying off your balance before the rate increases, you’ll want to avoid making further charges.