Consolidation Loans For Credit Cards – How To Get The Best Loans

December 4, 2011

Consolidation Loans For Credit Cards

Attaining a consolidation loan for credit cards you have debt with can equate to the first step towards gaining back your financial independency as well as freedom, and best of all being one less number in the ever growing number of people that are in over their heads in debt. When you take out a credit card consolidation loan, you will be able to possibly get a much lower interest rate, being that credit card interest rates are sky high, as well as you will avoid the gargantuan fees that comes with paying late, as you will now be paying on a much lower payment total each month as consolidation companies stretch out the repayment period, enabling lower payments.

consolidation loans for credit cards

When going to apply for a consolidation loan for credit cards, you will be entertained by two different offers, which are loans in the form of being secured or unsecured. Secured credit card consolidation loans, also known as secured lending, are offered for those who are willing to put up collateral like a home or car or any other asset that has high worth which the higher worth, the better chance that the person will receive a loan as well as better rates. If the borrower fails to make their credit card consolidation loan payments they will go into defualt, which then the lender then owns the collateral that is put up. The benefit of secured loans is that they always come with lower interest rates than that of unsecured loans, as well as offer more lenient repayment terms, enabling one to extend payments terms to up to 30 years. This method is most often used for those who have very high debt totals, and need to get a large loan.

Unsecured consolidation loans for credit cards do not require any collateral to be offered for acceptance, but unlike secured loans, acceptance is based off of your credit score. If one doesn’t have a good credit score, then it is imperative to find a someone who does, and have them be your co-signer, and being that you are not offering something to loose, interest rates will most likely be higher as well as repayment terms will be higher. Unsecured consolidation loans for credit cards are best for those who do not have a home or much in the form of collateral.

No matter which option you end up choosing, you will want to compare APR rates and terms along with other encompassing information before committing to the first company that will have you, as you will be able to find the best deal for you and not get sucked into a company that is just trying to close a deal. It is also highly advised that you employ a debt consouler who can advise you on reputable companies and the best terms for your particular situation as well as they can also provide alternatives that can be better for your situation if infact a consolidation loan for credit cards isn’t the best way to go.

How To Get The Best Conolidation Loans For Credit Cards

Below are a few tips that you may want to consider entertaining in the event that you choose on using consolidation loans for credit cards.

  • In the event that you want to pay your debt off early, you will want to find a company that offers principal rate reduction,
  • If in fact you are looking for a longer repayment term to pay off your credit card consolidation loan, you will want to find a company offering interest rate reductions.
  • Make sure you find companies who have permanent discounts, not just temporary.
  • If you happen to be with another lender, and during that time you started with a poor credit score, but have boosted it up during the time your have been with your current lender, like 100 points or more, you can consider going to another lender who may give you a better interest rate, or try and negotiate better terms with your current credit card consolidation lender since they want to keep your business.
  • Low interest rates are also found through non profit organizations which you can tell if they are non profit by asking them to prove their non profit formation which is:  (501(c)(3)), but if you do not go with a non profit organization, make sure the company is involved with either The Association of Debt Settlement and/or Internal Association of Professional Debt Arbitrators (IAPDB) or both.
  • Using auto debit can result in your saving a small percentage, but a percentage none the less on your interest rates, as well as ensures that you make your consolidation loans for credit cards payment on time each month.
Category: Credit Card Consolidation

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Sell Links