Consolidating credit card debt into a loan
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.
If you’ve got lots of different debts and you’re struggling to keep up with repayments, you can merge them together into one loan to lower your monthly payments.
You borrow enough money to pay off all your current debts and owe money to just one lender.
Debt consolidation won’t work if you have too much debt or haven’t fixed underlying spending issues.
Almost all lenders require you to be 18 years or older and a legal U. resident with a verifiable bank account and not in bankruptcy or foreclosure.
With a debt consolidation loan, a lender issues a single personal loan that you use to pay off other debts, such as balances on high-interest credit cards.
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.Several personal finance websites, including Nerd Wallet, offer free access to your credit score and credit report.A higher score will qualify you for more loan opportunities, lower interest rates and better loan terms in the future. Several personal finance websites, including Nerd Wallet, offer a free credit score.Look for a site the offers educational tools such as a credit score simulator plus access to your credit report.