If you have credit card or other debt with rates of 15% or higher the absolute fastest and most effective way to lower the interest you pay is to apply for a balance transfer, with a 0% rate. Even if you can’t pay it off during the intro period, you’ll be able to roll it over to another bank with a new offer when the promo is up as long as you keep your credit in strong shape.
If you have credit card or other debt with rates of 15% or higher the absolute fastest and most effective way to lower the interest you pay is to apply for a balance transfer, with a 0% rate.
Even if you can’t pay it off during the intro period, you’ll be able to roll it over to another bank with a new offer when the promo is up as long as you keep your credit in strong shape.
You can read our guide to balance transfers to learn about their pros and cons.
But a balance transfer isn’t for everyone, especially if your credit score isn’t perfect or if you need to borrow cash.
A personal loan with a set payoff period a few years from now is often the next best thing with these advantages:
One monthly payment
A set rate
You don’t need absolutely perfect credit
You can check your rate without touching your score
There are more attractive deals than ever thanks to some new online lenders and you can see sample rates below for excellent credit and good credit.
Tip: Apply for several loans to check rates. You can apply to each personal loan company separately.
Some personal loan providers let you check the rate you’ll get without impacting your score, unlike credit cards.
They’ll do a ‘soft pull’ with your Social Security Number so your best plan is to give your information to several of them and see who gives you the best rate. You can use our new personal loan tool to compare interest rates from multiple companies at once.
Once you get rates, put them in our Balance Transfer vs Personal Loan calculator to see how they compare on interest paid and time to paying off your debt.
Why is this a good way to save?
Banks don’t care much for personal loans because the lower rates earn them less profit than credit cards.
Fortunately, some new companies believe you should be able to get a competitive rate without dealing with credit card intro offers, even if your credit isn’t perfect.
They’re doing it by lending online only without the overhead of branches.
They pass the savings on to you through better rates, and you can check up on them below.
Personal loans for Excellent Credit
The following providers are for you if you want the absolute lowest possible rates that reward a record of no late payments and good income, even though you have some high rate debt you want to clean up.
Unless you get a rate of 5% or less, you’re probably better off with balance transfer deals, but the convenience of a fixed payment and walking away from credit cards makes personal loans appealing.
SoFi*
Sofi offers some of the best rates available if you’re looking to refinance your credit card debt. You’ll need to have a pristine record of paying your bills on time, but they’re willing to offer rates that are very competitive, even below 5%.
Sofi’s believes if you’ve graduated college or went to grad school you’ll be a more responsible borrower, so they may be more likely to give you a better rate, even if your credit history is limited.
For example if you have $10,000 in credit card debt, good income, and great credit, their best rate could save you as much as 0% balance transfer deals once you factor in the fees for each.
What we like best about SoFi is that they offer no origination fee and no prepayment penalty. If you think you may be able to pay off your loan earlier (or want the flexibility to do that), SoFi is the only lender we reviewed that charges no fee at all. Given their very low rates, we think anyone with good credit should start with SoFi first, and then compare their offer to the rest of the providers.
Rates: 5.95% -12.99%, fixed, with AutoPay. You can also select a variable interest rate. With AutoPay, the rates are from 4.73% – 10.83%. Rates are based upon 1-month LIBOR and are capped at 12.99%.
Upfront fee: 0% – No origination fees, no prepayment fees and no balance transfer fees
Amount: $5,000 – $100,000
Period: 3 – 5 years
Available states: All states except Tennessee and Nevada.
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Source:
http://www.magnifymoney.com/blog/personal-loans/where-to-get-the-best-personal-loan-rates-online268781204
