Home
Wiki User
Answered 2013-05-29 18:21:39
Securing a loan to pay off a credit card debt is not generally a good idea. However, if the interest rate on the loan is lower than the credit card rate it may be a good thing to do. Online lenders usually do not offer a rate lower than credit cards, so one's bank may be the only place to find a loan with a lower rate.
Your Answer
Still Have Questions?
Related Questions
What are some dangers of taking out a loan to pay down credit card debt?
The danger of taking out a loan to pay down credit card debt is that one may then be inclined to borrow more on the credit card. However, if the loan is at a lower interest rate than that on the credit card debt, and more debt is not incurred, it would be a good idea.
If my husband dies and leaves credit card debt and our childrens parent plus loan debt am I responsible for assuming the debt in PA?
not if you have death insurance on the loan and credit cards
How can one get rid of credit card debt?
There are a number of ways to get rid of credit card debt, though some are more effective than others. It is quite common for people to transfer the debt from one credit card to another credit card that has no or low interest on balance transfers. It is also quite common for credit card debt to be included in a personal loan or car loan, or for it to be absorbed into the mortgage.
Is a credit card money?
No, it is more like a loan from the card's dealer. You then create debt on your credit card if you buy things with it. Then you have to pay back the debt to the card manufacturer.
Can a credit card stop a loan approval?
Yes. If you are approved for a loan based on your current debt and income, and then you obtain new debt such as a credit card you may no longer meet the requirements for your current loan approval thus resulting in a decline of the pending loan.
Benefits of a Credit Card Debt Loan?
Due to the recent recession, many families have had to rely on credit cards to make their monthly financial obligations. While this was a temporary solution, it did lead to a significant accumulation of debt for many people. To help get out of debt, many people could benefit by taking out a credit card debt loan. A credit card debt loan will be used to pay off outstanding credit card balances. This loan will normally have a low interest rate, which will allow you to save a significant amount of money each month on excess interest charges that come with high-rate credit cards.
What exactially is debt consolidation?
Debt consolidation is taking out one loan to repay all others, such as multiple credit card bills. It is most often used to secure a fixed interest rate, or simply to only have one loan instead of several.
Can business credit card debt affect my personal credit card balance?
A business credit card debt can affect someone's personal credit card rating. A credit report for an individual is processed by activity of one's overall credit. This means that having debt for a business credit card can hurt a person's chances of receiving lower interest for a home finance loan.
Where can one get a loan to repay credit card debt if they have very bad credit?
To get loan for repaying credit card debt if one has bad credit, one should contact banks or other financial businesses that are specialized in bad credit loans. There are also online resources for bad credit loans such as EzBadCreditLoans and BadCreditLoansWire.
How does one obtain a credit card debt consolidation loan?
There are a number of ways for one to obtain a credit card debt consolidation loan. One option is to view websites such as Money Supermarket which can provide and compare details of a suitable companies.
Where can one get a credit card consolidation loan?
There are many companies that offer credit card consolidation services. Some of these include National Debt Relief, CuraDebt, and CareOne Debt Relief Services.
What kind of credit score do I need to secure a debt loan?
Most generally, debt consolidation loans are for people who have no so good credit. You could check out www.lendersmark.com for more information.....
Where can a Christian get a credit card consolidation loan?
A Christian can get a credit card consolidation loan at Prosper's online website. They offer many low rate debt consolidation loans with a fixed interest rate.
How can one pay off student credit card debt?
There are many ways to pay off student credit card debt. Some of the ways to pay off credit card debt are borrow against life insurance, get a home equity loan, renegotiate the term with a creditor and many more.
How could a person consolidate their credit card debts?
Credit card debt can be consolidated into one payment. One can contact a financial institution to apply for consolidation loan. Banks often grant these to customers with good credit, but high debt.
What is minimum debt due to be able to consolidate credit card debt?
don't consolidate, pay the debt off. To answer your question, it depennds on the company giving you the loan?
What happens if you don't make your credit card payment?
READ YOUR CREDIT CARD AGREEMENT If you fail to pay your credit card, you defaulted on the loan, it will go to a debt collection agency, and you can be taken to court by the credit card company, resulting in a judgment against you.
Can the bank you have a second mortgage with and a credit card with attach that credit card to your second mortgage after a person is deceased?
Once a person is deceased all debt is completely erased from that person's credit. If they own a home and do not have a will nor a co-signer of the home loan the government will take over the ownership of that home. If they have credit card debt, the debt is forgiven and no longer in existense.
Credit Counseling?
form_title=Receive Credit Counseling form_header=Professionals can help you regain control of your finances. What is your total amount of debt?=_ How many credit cards do you own?=_ Are you currently employed?= () Yes () No What kind of debt do you have?= [] Credit Card [] Auto Loan [] College Loan [] Mortage [] Other
Should You Take Out a Loan to Pay Off Credit Card Debt?
If you have a large amount of credit card debt, taking out a personal loan to pay it off may seem like an appealing idea. There are some serious considerations that you should think about before making a decision like this. First, make sure that the interest rate on your loan will be lower than what you are currently paying on your credit card so that you'll realize savings as you pay off your debt. Even more importantly, if you plan to take out a second loan to pay off existing debt you must be willing to stop using your credit card or you'll only end up with a larger amount of debt than what you started with.
Who do I contact for Credit Card Consolidation?
If you have good credit, contact your bank and see about a debt consolidation loan. If not, seek out Consumer Credit Counselling Service (CCCS).
How does a home equity loan versus credit card debt affect your credit scoreeffect of secured loan versus credit card debt on your credit score?
Revolving Debt carries more weight w/ the bureaus that installment debt. A "loan" is a "loan" not "credit" and "credit" is "credit". They don't call it a "credit" score for nothing. The bureaus don't differentiate between a secured credit card vs a regular credit card. SO much emphasis is placed on credit, simply due to the fact that when push comes to shove and you have to make a payment. You HAVE to have a car, you HAVE to have a home......if you don't.......they'll come get both. If you DON'T pay JC Penny's.......I don't think that they'll come repo your new shoes. So, credit cards are the key because they are the first things to go. A person w/ PERFECT credit (800's) could see a score drop of 150 points or more because of ONE recent 30 day late on a credit card.
What Types of Debts Qualify for Consolidation?
Many different types of debts qualify for consolidation, including credit card debt, store card debt, personal loan debt, utility bills, and so forth.
Still have questions?
