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Bank Loan to pay off Credit Cards
Posted on 1/11/11 at 10:54 am
Posted on 1/11/11 at 10:54 am
So I was considering attempting to get a bank loan to pay off my 3 high interest rate credit cards.
Total amount of debt is around $3000-3500. The interest rates are in the 25-27% range.
I figured if I could get approved for the loan at a lower interest rate, it'd be smarter than paying these high interest rates on these credit cards individually.
No?
Any suggestions?
Total amount of debt is around $3000-3500. The interest rates are in the 25-27% range.
I figured if I could get approved for the loan at a lower interest rate, it'd be smarter than paying these high interest rates on these credit cards individually.
No?
Any suggestions?
4
Posted on 1/11/11 at 11:28 am to elle
What's your age, income, credit score? Do you have any other debts?
Are the cards maxed out? Are you having trouble paying the minimum payments? Do you have any cash saved up?
Are the cards maxed out? Are you having trouble paying the minimum payments? Do you have any cash saved up?
This post was edited on 1/11/11 at 11:37 am
Posted on 1/11/11 at 11:59 am to aaronb023
23 fulltime job and another part-time around 2400 a mth
I'm not sure what my credit score is. I think it's 600 something.
Student loan debts (lots) plus a car note.
Cards are not maxed out although almost. No trouble paying min, always pay more than min. No cash saved up.
I'm not sure what my credit score is. I think it's 600 something.
Student loan debts (lots) plus a car note.
Cards are not maxed out although almost. No trouble paying min, always pay more than min. No cash saved up.
Posted on 1/11/11 at 12:04 pm to elle
Have you called the credit card issuers to see if they'll lower the interest rate? Sometimes they will if you ask and it costs you nothing. But you do have to ask, they aren't going to do it on their own.
Posted on 1/11/11 at 12:09 pm to foshizzle
No I haven't. I guess I should though.
Would that be better than the loan?
Would that be better than the loan?
Posted on 1/11/11 at 12:10 pm to elle
You may be able to get a loan but I wouldn't count on it. You could look for a credit card that offers 0% on balance transfers. Just make sure you don't have a late payment or you will be back where you are. I'd suggest doing something like the dave ramsey debt snowball (google it). You should be able to pay it off quick.
Posted on 1/11/11 at 4:23 pm to aaronb023
My wife got a loan to pay off her CC debt (around $5-6K), and she liked it because there was a set date that her debt would be gone, instead of paying on CC and never feeling like she was getting anywhere. She also had the self control to not run up her CC's again after they were paid off.
Posted on 1/11/11 at 5:37 pm to elle
quote:
Would that be better than the loan?
No idea, but it's worth a shot right? The key is whether you've been paying the bills on time, if you have you can sometimes get shockingly steep discounts.
ETA: If your is only 600-ish you may not have any luck, but ask anyway, it costs nothing. Rates like 25% are usually what they charge people who have repeatedly paid late in the last year or so.
This post was edited on 1/11/11 at 5:40 pm
Posted on 1/12/11 at 8:06 am to foshizzle
Yeah I figured it would be worth a try.
I may call the credit card companies first to see if I can get a lower rate.
I have been paying on time for a year or more and make an effort to always pay more than the minimum. I like the idea of consolidating it all into one and have a date where it will all be gone like you said.
Sometimes I feel like I'm not getting anywhere with the payments.
Credit cards suck.
I may call the credit card companies first to see if I can get a lower rate.
I have been paying on time for a year or more and make an effort to always pay more than the minimum. I like the idea of consolidating it all into one and have a date where it will all be gone like you said.
Sometimes I feel like I'm not getting anywhere with the payments.
Credit cards suck.
Posted on 1/12/11 at 9:10 am to elle
Yes, credit cards do suck. Especially at 20 something percent. If you made that on investments you'd get rich quick. Just the opposite with debt. You become broke quick. Good luck with whatever you decide.
Posted on 1/12/11 at 9:45 am to aaronb023
thanks for the help!
Posted on 1/12/11 at 2:35 pm to elle
Do you have any equity in your home?
Posted on 1/12/11 at 2:49 pm to Nike1
seriously?
I don't own a home, I was barely approved for a vehicle. I'm 23 and just out of college.
I don't expect to buy a home for another decade.
I don't own a home, I was barely approved for a vehicle. I'm 23 and just out of college.
I don't expect to buy a home for another decade.
Posted on 1/12/11 at 5:25 pm to elle
Call the credit card company during normal business hours (8 to 5) and ask to get your interest rate lowered.
They will tell you no. If they do ask to speak to a supervisor or manager. The credit card people are trained to say no at first hoping you will give up. Once you speak to a supervisor he should help you if you pay your bills on time.
They will tell you no. If they do ask to speak to a supervisor or manager. The credit card people are trained to say no at first hoping you will give up. Once you speak to a supervisor he should help you if you pay your bills on time.
Posted on 1/12/11 at 6:09 pm to elle
I pulled this off with my wife before we were married.
She owed 28K on a credit card with 18 percent interest. I got her a loan at a bank for 6 percent. But she was making 39K salary. If you're not making 50K in today's money you're a higher risk.
She owed 28K on a credit card with 18 percent interest. I got her a loan at a bank for 6 percent. But she was making 39K salary. If you're not making 50K in today's money you're a higher risk.
Posted on 1/13/11 at 10:41 am to ScottieP
quote:
Call the credit card company during normal business hours (8 to 5) and ask to get your interest rate lowered.
They will tell you no. If they do ask to speak to a supervisor or manager. The credit card people are trained to say no at first hoping you will give up. Once you speak to a supervisor he should help you if you pay your bills on time.
That was my experience back in the day. In a previous time of life I carried a balance and was being charged 24% on average. I called the issuer and got this same runaround but a little persistence got it down to 10-12% instead. Your mileage will, of course, vary.
ETA: I should add that at the time although I carried a fairly large balance I had no delinquencies at all. If you do then I'd call anyway but wouldn't expect much. Plus this was in the mid-90's, a lot has changed since then.
This post was edited on 1/13/11 at 10:44 am
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