Card consolidating credit debt
That’s because you’ll be hard-pressed to find a personal loan offering 0% APR (or anything close, really), so it’s often a better deal even with balance transfer fees.
The main exception to this advice is if you need longer than the introductory period to pay off your balance.
Your loan cost will also depend on the length of your loan.
Shorter loans will have higher monthly payments, but lower overall costs due to fewer interest rate fees, while the opposite is also true.
Carrying around high-interest credit card debt can sometimes feel like being in a boat with a leak; if you don’t address the problem, you’ll find yourself underwater before you know it.
But trying to pay down that credit card debt while high interest fees pile on top can start to feel like trying to bail out your boat with a spaghetti strainer.
For the most part, you’ll have the option to specify which balances you’d like to transfer to a particular card during the application process for that card.
Completion of a balance transfer requested during application will require that you are both approved for that card and have an available credit line large enough to accommodate your transfer and any applicable fees.
To determine the actual cost of a loan, you’ll need to look at more than the APR and monthly payment.
You can also transfer a balance to an existing card (providing you have an appropriate credit line on that card), which can usually be completed through your online credit card account.
Some introductory balance transfer offers will require qualifying balance transfers to occur within a specific time period after opening the card, most commonly within the first 90 days.
Using an online lending network, such as our expert-rated picks below, can be an easy way to compare offer terms from multiple lenders.
A successful consolidation loan will have a much lower APR than is charged by any of the credit cards you are trying to consolidate, but that isn’t the only factor of a good consolidation loan.