Just about everyone nowadays carries at least a little bit of credit card debt. But if you
feel like you’ve become bogged down with debt and don’t see any way out, don’t worry!
There are lots of ways to reduce your credit card debt.
One of the best is to use a personal loan to pay off a credit card. Here’s what you need
to know and how to do it.
What’s So Great About Personal Loans?
Personal loans are almost tailor-made to help relieve you of credit card debt-related
stress. They have some great characteristics, one of which being an interest rate that’s
fixed for the life of the loan. Not only that, but interest rates on personal loans are
usually much more advantageous than those on credit cards.
That means you’ll be paying less over time than you would otherwise. Even high-APR
loans are still likely to be better for you overall except in the most extreme of cases.
Additional advantages of using a personal loan to pay off a credit card include the fact
that there are no limitations on how you use such a loan. You can use a single personal
loan to consolidate credit card debt, pay for repairs to your home or car, and even use
anything left over to go out to the movies for once. Other benefits include a fixed
repayment schedule with no surprises and not having to put up collateral to take out a
Always Check Your Credit First
It’s absolutely true that a personal loan can be just what the doctor ordered if you’re
finding it a struggle to deal with credit card debt. At the same time, though, you don’t
want to just start submitting applications left and right. There’s a process that you need
to go through in order to ensure you nail the audition, so to speak.
The most important thing you need to do before applying for a personal loan is to make
sure your overall credit rating is in good shape.
You need to check your credit prior to applying because too many loan applications in
too short a period of time can reduce the likelihood of a lender approving your loan
application in the first place. Once you have your credit report in hand, you need to go
through it and search for any possible errors that might bring your credit rating down.
The higher your credit score, the better your chances are that you’ll get a loan with a
good interest rate — and seeing as that’s one of the biggest benefits of using a personal
loan to pay off a credit card, this should be a priority.
Even With Bad Credit, You Can Still Get a Personal Loan
If your credit rating is still less than ideal even after you check your report for any errors,
don’t worry: you can still get a personal loan. There are plenty of lenders out there
willing to take a risk on someone with some black spots on their credit history,
especially since so many people do use personal loans to help rebuild their credit by
consolidating debt in an effort to make it easier to repay. There are a few things you
need to watch out for if this is the case.
Personal loans for bad credit usually still carry a better interest rate than most credit
cards, but they do tend to charge more in interest than a loan issued to someone with
Also, some lenders tack on an “origination fee” of anywhere between 1% to 6% as the
cost of processing the loan. Finally, if you plan on paying back your loan early, make
sure you don’t choose one that has a prepayment penalty for doing so.
Use Match Financial to Help You Find the Perfect Personal Loan for You
It’s always best to compare rates and terms from as many lenders as possible before
making a decision on choosing a personal loan to pay off credit card debt.
The easiest and most convenient way is to use Match Financial! We can show you all
the relevant interest rates and repayment terms for all the lenders we work with at a
glance, making the decision easier than ever. Applications are easy as well, and if
you’re approved you can expect to get your money in as soon as the next day in many
cases. Take the first step to better financial health with Match Financial today!