Consolidating credit card debt good or bad ashley benson and darin brooks dating
» MORE: Pre-qualify on Nerd Wallet and get a personalized rate Pros: Back to top If you’re a homeowner, you can take out a loan or line of credit on the equity in your home.A home equity loan is a lump sum loan with a fixed interest rate, while a line of credit works like a credit card with a variable interest rate.» MORE: The good and bad of home equity loans Pros: Back to top If you have an employer-sponsored retirement account, it’s not advisable to take a loan from it, since doing so can significantly impact your retirement.However, if you’ve ruled out balance transfer cards and other types of loans, this may be an option for you.You’ll need a good to excellent credit score — above 690 — to qualify for most cards.Make a budget to pay off your debt by the end of the introductory period, because any remaining balance after that time will be subject to a regular credit card interest rate.Consolidation works best when your ultimate goal is to pay off debt.
For online lenders, the lowest rates go to those with the best credit; rates top out at 36%.
Borrowing money, even to consolidate debt, usually requires that you have a good credit score.
Debt consolidation loan options for bad credit do exist, but the pricing and terms may not be as attractive.
Spend some time shopping around to find the best terms you can qualify for.
Avoid choosing a bad loan out of desperation––it could end up costing you more in the long run.
Lenders don’t charge fees for paying off your loan early, but they may charge upfront origination fees that range from 1% to 5% of your loan.