Month: November 2021

Loans Serivces

VA Streamline Refinance: How It Works and When to Get One

Kevin Smith

If you’re a veteran with a VA home loan, there’s a simple way to refinance that could save you money.

A VA streamline refinance — or VA interest rate reduction refinance loan (IRRRL) — may be able to lower your interest rate, shorten your mortgage term, or shrink your monthly payment, often with no appraisal or credit underwriting.

Here’s what you need to know about VA streamline refinances:

What is a VA streamline refinance (VA IRRRL)?VA streamline refinance loan benefitsDrawbacks of VA streamline refinance loansVA streamline refinance eligibility guidelinesVA IRRRL costsHow to apply for a VA IRRRLIs a VA streamline refinance loan right for you?

What is a VA streamline refinance (VA IRRRL)?

If you’re an active-duty military service member, veteran, or surviving spouse with a VA mortgage, you might be thinking about refinancing to lower the interest rate on your current home loan.

An IRRRL can help you accomplish this by replacing your existing VA loan with a new one that has a different interest rate and monthly payment, and possibly a different term.

What makes this refinance “streamlined” is that it typically requires fewer steps and less paperwork. For instance, the VA doesn’t require an appraisal or credit underwriting for this loan, which means you’ll usually close faster than someone doing a conventional refinance.

Learn More: How Soon You Can Refinance: Typical Waiting Periods By Home Loan

VA streamline refinance rates

Veterans United, a major originator of VA loans, says that the interest rates on VA loans tend to be 0.5% to 1.0% lower than the interest rates on conventional mortgages. And lending statistics from ICE Mortgage Technology show that from January through August 2021, VA loan rates were about 0.3 percentage points lower than conventional loan rates on a 30-year, fixed-rate mortgage.

Good to know: While somewhat helpful, general figures like these won’t tell you what type of mortgage you’ll get the best rate on. Your personalized rate depends on your financial situation and what’s happening in the mortgage market when you apply.

Rates also vary by mortgage lender, loan term, and how much home equity you have. For example, if you have at least 20% equity and can pass underwriting and an appraisal, you might find a better interest rate and lower APR by refinancing into a conventional loan, even if you qualify for an IRRRL.

Getting pre-approved with multiple lenders will give you the best idea of what rates you qualify for. It’ll also allow you to compare loan costs and get a taste of the lender’s customer service before committing to the mortgage approval process. While Credible doesn’t offer VA streamline refinances, we can help you find a great rate if you’re refinancing a conventional loan.

Find out if refinancing is right for you

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VA streamline refinance loan benefits

A VA streamline refinance has several appealing advantages:

Competitive rates: VA loan rates tend to be similar to or slightly less than conventional loan rates.No private mortgage insurance: Even with less than 20% equity, there’s no PMI or equivalent for VA loans like there is for conventional loans and FHA loans.No appraisal: A no-appraisal refinance will save you a few hundred dollars in upfront costs. It also means you may be able to refinance a home that’s lost value.Less documentation: A VA streamline refinance doesn’t require underwriting, so you may be able to forgo gathering bank statements and tax returns for lenders.Closing cost financing: Avoid out-of-pocket costs by rolling closing costs into your new loan.Quick closing: No underwriting and no appraisal means it likely won’t take as long to refinance your home.No occupancy requirement: You can do a streamline refinance on a home you no longer occupy as your primary residence.Catch up if you’ve fallen behind: If your VA loan is past due, you may be able to use an IRRRL with credit underwriting to catch up on overdue payments, pay off late fees, and get into a more affordable loan that will stabilize your situation.Good to know: The VA’s lending guidelines don’t require credit underwriting or an appraisal for an IRRRL, but they also don’t forbid it. Lenders may still want to check your credit or order an appraisal, and if they do, they’re allowed to charge you for those costs.

Drawbacks of VA streamline refinance loans

Even though a VA streamline refinance is meant to be money-saving and efficient, you should understand how its drawbacks might affect you:

Funding fee: You’ll pay a funding fee each time you get a VA loan. The fee is 0.5% of the loan amount for an IRRRL.Existing VA loan required: If you have a conventional loan or FHA loan, you’re not eligible for an IRRRL. However, you may qualify for a VA cash-out refinance.Closing costs: Expect to pay fees for loan origination, title insurance, and local government requirements.Restarting your loan term: Many borrowers choose the same loan term when they refinance. If you currently have a 30-year loan that you’ve been paying for four years, you’ll be mortgage-free in 26 years. But if you refinance into a new 30-year loan, you’ll have to start over.No cash out: Borrowers are not allowed to cash out any equity with an IRRRL unless the money is a reimbursement for energy-efficient home improvements completed within 90 days of closing and costing no more than $6,000.Waiting period: You’re not eligible for an IRRRL until you’ve had your existing VA loan for 210 days and made six consecutive monthly payments.Tip: You can avoid restarting your loan term by refinancing into a shorter term or prepaying principal on your new mortgage. If you refinance into a shorter term and your new payment is at least 20% higher than your existing payment, you’ll have to go through underwriting.

Compare Your Options: 3 Ways to Refinance a VA Loan

VA streamline refinance eligibility guidelines

Qualifying for a VA streamline refinance can be easier than qualifying for other refinance loans. Here are the key criteria and a brief explanation of each one:

RequirementDescriptionYou’re refinancing a VA loanYou can’t use a VA IRRRL to refinance a conventional, FHA, or USDA loan.You’re no more than 30 days behind on paymentsIf you’re more than 30 days behind, you’ll have to go through underwriting.The home has been your primary residenceIt’s OK if your home is not your primary residence anymore or won’t be after you refinance, as long as it was previously.Your new loan won’t push back your payoff date by more than 10 yearsFor example, if you have 12 years left on your VA loan, your new loan term can’t be longer than 22 years. That means you wouldn’t be able to refinance into a 30-year loan. Your new loan will have a lower interest rateOne exception: You can refinance into a higher rate if you’re refinancing an adjustable-rate mortgage (ARM).You don’t want to cash out any equityThere’s no cash-out refinance option with an IRRRL. Look into a VA cash-out refinance instead.

VA IRRRL costs

The closing costs for a VA streamline refinance are similar to the closing costs for other VA loans. However, you likely won’t have to pay for an appraisal, which will save you a few hundred dollars. Here are some of the closing costs often associated with a VA IRRRL:

Closing costs typically range from 2% to 5% of the loan amount. Most borrowers pay an origination fee, title insurance fee, and deed recording fee. You may also owe local taxes, which are inexpensive in some areas and quite costly in others. And some borrowers choose to prepay mortgage interest through points in exchange for a lower interest rate.

A closing cost unique to VA loans is the VA funding fee: on an IRRRL, the fee is 0.5%, or $500 for every $100,000 borrowed. You may be exempt if you’re receiving payments for a service-connected disability or you’ve earned a Purple Heart.

Rolling closing costs into your VA IRRRL

An IRRRL allows you to roll your closing costs into the loan. You might benefit from this option if

you stand to save a lot from refinancing but don’t have cash on hand. It can also be a smart move if you’re planning to sell your home the next time you get permanent change of station (PCS) orders. It probably doesn’t make sense to pay a lot up front for a loan you’ll have short term.

On a 30-year mortgage, here’s how much more you would pay over the life of the loan by rolling $12,000 in closing costs (4% of $300,000) into the loan instead of paying them up front.

Interest ratePay closing costs up frontRoll closing costs into loanAdditional cost3%$12,000.00$18,345.30$6,345,304%$12,000.00$20,721.16$8,721.165%$12,000.00$23,388.64$11,388.64

While inflation is normally seen as a bad thing, it can be good for mortgage debtors with fixed interest rates. As years pass, even modest price and income inflation can make your mortgage debt feel less expensive.

In other words, while an extra $6,300 may sound like a lot today, it’ll feel like less and less each year due to inflation. Still, the higher your interest rate, the less you may want to borrow.

How to apply for a VA IRRRL

If you apply for a VA IRRRL, the process will look something like this:

Identify reputable lenders that offer a VA streamline refinance.Submit a pre-approval application online or by phone with at least three lenders.Compare your Loan Estimate from each company, looking for the best terms for your situation.Decide how many points to pay, if any, to lower your rate.When you’re happy with current interest rates, lock your rate.Submit any supporting documents your lender asks for. Your lender will usually be able to obtain your VA loan certificate of eligibility (COE) for you.Sign the paperwork to close on your loan.

Read: How Often Can You Refinance Your Mortgage?

Is a VA streamline refinance loan right for you?

Refinancing an existing home loan into a new loan may be a good idea if you’ll be able to lower your interest rate by at least one percentage point. It also makes sense if you expect to keep your new loan long enough to break even on closing costs.

A VA streamline refinance in particular may be right for you if you’ve lost your job, your credit score has dropped, your income has decreased, or your home’s value has declined. Since lenders aren’t required to order an appraisal or perform credit underwriting for an IRRRL, this type of refinance could help you keep your home if times have gotten tough.

Tip: If you’re struggling to pay your mortgage, contact the Department of Veterans Affairs. They will assign a loan technician to help you.

If you plan to move soon or can’t lower your rate, refinancing may not help you. And if you have at least 20% equity, good credit, and a steady income, it’s worth comparing quotes for both an IRRRL and a conventional refinance.

No matter which type of refinance you decide to pursue, comparing offers from multiple lenders can help you save money. While Credible doesn’t offer VA loans, we can help you see customized, prequalified rates for a conventional refinance — checking rates with us won’t impact your credit score.

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Keep Reading: How to Refinance Your Mortgage With Bad Credit

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Banking & Savings

14 Home Prep Tasks to Take Care of Before Winter Hits

Kevin Smith

Winter weather can be hard on your home if you’re not prepared. But by taking care of a few key tasks, you can often avoid expensive damage and prevent premature wear and tear.

Even if you live in a milder climate, you’ll want to review the list below. See which home tune-up tasks you may want to perform now to keep your home clean, safe, and comfortable throughout the coldest, darkest days of the year.

Here are 14 tasks to complete before winter arrives:

Get professional maintenance for your heating systemTest your carbon monoxide detectorsLocate air leaksInsulate your homeUpgrade your windowsPrepare your pipesInstall a programmable or smart thermostatInsulate your hot water tankReverse the direction your ceiling fan spinsHave your fireplace and chimney inspectedUpdate your emergency supplies for winter stormsClean your gutters and downspoutsInspect your roofCheck tree health

1. Get professional maintenance for your heating system

It’s smart to hire a professional to inspect your heating system before the cold weather sets in. They’ll perform routine maintenance that you might not have the time for, like changing air filters, vacuuming registers, and cleaning dirt and debris in and around the unit that could harm its functioning.

They’ll also check for leaks, identify obstructions, lubricate moving parts, look for signs of corrosion, and generally use their expertise to extend your system’s life and minimize the chance of it breaking down on the coldest day of the year.

Transform Your Space: 8 Popular Pandemic Home Renovations

2. Test your carbon monoxide detectors

Carbon monoxide is a dangerous odorless gas that can send you to the emergency room or even kill you. You might think you’re coming down with the flu when you’re actually being poisoned by carbon monoxide. If you’re sleeping, you may not experience any symptoms before it’s too late. Pets are susceptible, too.

Heed these warnings from the Centers for Disease Control and Prevention, and make sure you have working carbon monoxide detectors throughout your home, especially near sleeping areas. They’re important year round, but especially in winter. Oil and gas furnaces, fireplaces, and generators can cause toxic CO to build up in your home.

3. Locate air leaks

If you want to go all out, you can hire a professional to conduct a blower door test. This test can locate leaks you might be unaware of and identify places where your home could use more insulation, according to the US Department of Energy.

It’s also fine to look for leaks yourself. Homes tend to leak air in places you can easily check: around doors and windows, electrical outlets, baseboards, pipes, vents, and anywhere else there’s a hole in a wall or connection between the inside and the outside. Focus on fixing the biggest leaks with caulking and weatherstripping.

Check Out Other Simple Projects: 18 Home Improvement Projects You Can Wrap Up in a Day

4. Insulate your home

Along with sealing leaks, adding insulation to your home can help you maintain a more comfortable temperature while using less energy. Basements, attics, walls, and other areas where your living space meets the outdoors or an unconditioned space (like an attached garage) are all candidates for more insulation, especially in older homes.

Hiring a professional will cost more up front but may pay off through better results. An expert can evaluate where additional insulation will make the biggest difference, how much you need, and the best type to use. They can also install it correctly to make sure it’s effective.

5. Upgrade your windows

If you have old windows, especially single-paned ones, you know they’re not great at keeping your home warm in the winter or reducing noise from outside. Sometimes, they’re unattractive as well.

Replacing every window in your home can be an expensive project (one you might want to finance with a home improvement loan), and it might take you years to recoup your investment. At the same time, though, you’ll save money on heating and cooling costs over the long run, make your home more comfortable, and boost the property’s value.

Tip: If you want to keep costs down, consider replacing the windows in one room where you’ll notice the difference most, like your bedroom. Homeowners can expect to spend $300 to $1,200 for one new window, depending on type and size, plus $150 to $800 for installation, according to HomeAdvisor.

You may be able to claim a federal tax credit of up to $200 for Energy Star-rated windows you purchase before Dec. 31, 2021.

6. Prepare your pipes

Insulating exposed pipes is a simple and inexpensive project most able-bodied homeowners can do themselves. Six feet of foam pipe insulation from a major home improvement retailer will cost you less than $5. Installing it is as easy as slipping the insulation over the pipe and taping the seams.

This project can reduce your water heating costs, but the real savings lie in preventing burst pipes and water damage to your home during freezing weather. You’ll also want to disconnect garden hoses and place insulating covers over outdoor faucets.

7. Install a programmable or smart thermostat

A smart thermostat can also help prevent burst pipes by letting you monitor and control your home’s temperature from your smartphone, even if you’re out of town. You can find a quality smart thermostat for anywhere between $100 to $250.

Energy Star-rated smart thermostats can help you save even more money on heating and cooling costs. They also offer convenient features like voice activation, occupancy sensing, and energy use monitoring.

Spend less: Your electric company or city might have rebates on qualifying smart thermostats, reducing your overall cost. Check online or contact your electric provider to see if there are any offers you can take advantage of.

A programmable thermostat that’s not WiFi-connected can also reduce your energy use. They cost less, at around $30 to $90, but you may spend more time adjusting the settings with schedule and weather changes.

To install a new thermostat, you might want to hire an electrician or HVAC technician, but some units are simple enough to install yourself.

8. Insulate your hot water tank

If you have an older electric water heater, correctly installing an insulation blanket made specifically for this purpose can save you money. The insulation will reduce some of the heat the tank loses to the air around it, especially if your tank is in an unconditioned space like a garage or outside cabinet.

The job isn’t complicated, but you may need a helper. Ask your electric company: they might come out and do it for you. Supplies will cost around $30, but the job can pay off after the first year.

9. Reverse the direction your ceiling fan spins

You can run your ceiling fans on low to make your home more comfortable and save energy during the winter. All it takes is nudging a small switch on the fan (or fan remote control) so the blades spin clockwise.

Changing the blade direction will help pull cool air up from the floor and push warm air down from the ceiling. You can do this task yourself with a stepladder and good balance.

Warning: Don’t attempt this task with fans on high ceilings: not only is it dangerous, but it won’t give you any benefit.

10. Have your fireplace and chimney inspected

Having your fireplace and chimney professionally inspected and possibly cleaned before you use it for the first time each year is a critical safety task. No one wants smoke building up in their living space, carbon monoxide poisoning, or a chimney fire.

That said, you may want to avoid burning wood in your home at all. The chemicals and ultrafine particles in wood smoke have the potential to cause life-threatening health problems. If you love sitting fireside, consider a professional conversion to a cleaner-burning gas fireplace.

11. Update your emergency supplies for winter storms

A winter storm could leave you without power for days and make roads unsafe. The insulation and leak sealing suggested above can really help in such a situation when you’re sheltering in place at home.

Here are a few supplies you’ll want to keep handy in case of a winter emergency:

Extra blankets and warm clothingBottled water and at least a 3-day supply of foodAir-activated hand warmersBackup power supplyHand crank radioBattery-powered LED lantern or flashlightEmergency supply of medicines (including pain relievers, prescription medications, and bandages)

12. Clean your gutters and downspouts

Free-flowing gutters protect your home from water intrusion and moisture damage. When your gutters get clogged with debris, they won’t work correctly: rain and melting snow can’t flow through them and may freeze, and the weight of that ice can cause your gutters to sag and pull away from the roof edge. Clogged gutters can also encourage harmful ice dams on your roof.

If you have a one-story house and a sturdy ladder, you might consider cleaning your gutters yourself. Otherwise, the safety risks of falling off a ladder are too great. Leave the task to a professional. You can expect to pay around $90 to $225 for gutter cleaning on a two-story home, according to HomeAdvisor.

Fun Ideas: 16 Fast Weekend Projects to Boost Your Home’s Curb Appeal

13. Inspect your roof

A roof inspection in advance of winter weather can spare you from the water damage of leaks. And a professional is usually the best choice for this job. Not only do you want to avoid falling off your roof, you most likely don’t have the training to identify potential weak spots like loose or missing flashing and poor seals around vents.

If your roof is in really bad shape, it may be time to replace it. The national average cost for new asphalt shingles, including installation, is around $8,500, according to HomeAdvisor. If you want to use higher-end shingles, need to replace rotted roof decking, or decide to add ventilation, costs can be higher.

Tip: Accessing your home equity through a home equity loan or line of credit can make sense in a situation like this, because protecting your home from damage is essential.

14. Check tree health

Most of us don’t take a close look at our trees on a regular basis. Even if we did, we might not know when they’re sick, weak, or otherwise posing a threat to our home. The worst-case scenario is a toppled tree crashing through your roof during a winter storm, causing expensive damage and leaving your home exposed to the elements.

To avoid harm to your home — and yourself — from unstable trees or large limbs that might break off due to winter weather, hire an arborist. These highly trained tree experts can help prevent problems as well as evaluate possible damage after a storm.

Read More: 10 Ways to Craft an Elegant Outdoor Space

Paying for winter-related home projects

If you’re concerned about paying for some of the pricier items on this list, a cash-out refinance could be a good solution. Mortgage rates are near historic lows, and home values have swung up across the country.

By replacing your existing mortgage with a new, less expensive one and cashing out some of your equity, you may be able to slide some essential home projects into your budget as well.

Credible makes it easy to compare mortgage refinance options. You can see rates from all of our partner lenders without leaving our platform. Check out the table below to get started.

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Financial Tips

Can’t Pay Mortgage Due to COVID? Here are Some Options

Kevin Smith

Many people are struggling to pay their bills due to the COVID-19 pandemic. But thankfully, as a homeowner, there are several options you can use to request financial relief and avoid foreclosure.

Lenders are willing to help you through these uncertain times, but you should contact them as soon as you fear you might not be able to make your mortgage payment.

Here are some of the ways you can get help paying housing costs during an economic hardship:

ForbearanceCARES ActEmergency rental assistanceMortgage modificationLoan assistanceTalk to a housing counselorRefinance your mortgage

Check your mortgage type

Your COVID-19 mortgage relief options depend on the type of mortgage that you have. The most common mortgage types include:

ConventionalFHAVAUSDA

These loans generally have the most assistance options if you’re behind on mortgage payments.

If you have a conforming conventional loan, Fannie Mae and Freddie Mac offer several mortgage relief options to qualified homeowners impacted by the coronavirus, including a forbearance plan and loan modification.

Non-conforming loans, like jumbo loans and government-backed loans, may have fewer financial protections since Fannie Mae and Freddie Mac don’t secure these loans. If you have one of the loans, contact your loan servicer to review your assistance options.

Tip: Mortgage servicers may ask for proof of hardship if you’re seeking a loan modification, but they generally cannot require you to provide proof of hardship to enter forbearance due to COVID-19.

Forbearance

When your loan servicer approves mortgage forbearance, you have permission to stop making monthly payments or reduce your monthly payment temporarily. However, mortgage forbearance doesn’t cancel out the payments — you’ll still need to repay the deferred principal and interest once forbearance ends.

COVID-19 mortgage forbearance extension: The deadline to request COVID-19 mortgage forbearance has been extended several times. It was most recently set to expire for eligible loans on Sept. 30, 2021.

However, you can now request up to six months of initial forbearance until the end of the nationally declared emergency for FHA, USDA, and VA loans. You may also request an additional six months of forbearance if the pandemic hasn’t ended by the time your initial forbearance expires.

If you requested forbearance between Jul 1, 2021 and Sept. 30, 2021, you’re eligible to request an additional six months of forbearance as well.

Home loans owned by Freddie Mac and Fannie Mae also have an open-ended request window.

Most lenders only issue an initial forbearance period of six months. Then, if you need extra help, you can request a forbearance extension in three or six-month increments until you’re in forbearance for 12 months.

When forbearance ends, you’ll need to repay the amount you deferred. Your repayment options may include:

Reinstatement: This is when you pay the entire deferral amount back all at once. Lenders cannot require this repayment option when claiming a coronavirus hardship thanks to the CARES Act but can for traditional forbearance requests. Repayment plan: You might be able to bring your mortgage current by entering a repayment plan and making additional monthly payments for 12 months after forbearance. Once your mortgage is current again, your monthly payment will return to its normal amount.Defer payments until the end of the loan: Another option is delaying the forbearance payments and paying them back at the end of the mortgage. While you stay in debt longer, you’ll have more time to pay it back and your monthly payment won’t increase.Tip: Your forbearance period may last up to 12 months. Single-family and multi-family properties are eligible. Forbearance also isn’t limited to first mortgages — you may qualify for it on your second mortgage as well.

CARES Act

The CARES Act passage in March 2020 provided several financial assistance programs for individuals. For example, this legislation paved the way for the first stimulus checks.

There are several coronavirus-related mortgage assistance benefits too:

Mortgage forbearance: It’s easier for homeowners to qualify for forbearance for up to 12 months. There currently isn’t an application deadline for conventional or government-backed mortgages.Foreclosure moratorium: Lenders were prohibited from starting the home foreclosure process until after July 31, 2021. While this moratorium expired, most mortgage servicers will not initiate foreclosure until Jan. 1, 2022, or later.Eviction moratorium: The federal eviction moratorium expired on Aug. 26, 2021, after a Supreme Court ruling. Landlords must provide a 30-day eviction notice to tenants.

Currently, only the mortgage forbearance benefit remains active for most homeowners.

Emergency rental assistance

Many states and cities offer emergency rental assistance programs. These programs can help you pay rent or cover utility payments.

You can search for local programs from the Consumer Financial Protection Bureau.

If you own rental property, many programs also accept landlord applications. Being able to collect up to 18 months of unpaid rent can help pay your mortgage on investment properties.

Mortgage modification

You may prefer asking your lender to modify your existing loan if you want to continue making payments and avoid the refinancing process.

A loan modification permanently adjusts your mortgage terms. The main benefits of a loan modification include:

Lower monthly payment: Your lender can reduce your monthly payment (while keeping your interest rate the same) by extending your loan term. You’ll pay more in interest over the long term with this option, but it can give you more breathing room in your monthly budget. Reduced interest rate: Your lender may offer a new interest rate if it’s lower than your current rate. This can significantly reduce your monthly payment. Switch to a fixed interest rate: Your lender may recommend switching from an adjustable-rate mortgage to a fixed-rate mortgage so you have a stable monthly payment for the life of your loan.

Loan assistance

Your state may also offer financial assistance for homeowners, and you might be able to qualify for these programs even if your mortgage is already in forbearance.

Many states receive funds from the U.S. Department of the Treasury’s Hardest Hit Fund to help you when you can’t pay the mortgage due to COVID-19. Oregon, for example, offers a five-year forgivable loan with its COVID-19 Mortgage Relief program. If you’re currently receiving unemployment benefits, your funds may help keep your home loan current and cover up to six additional payments.

Certain local cities also offer mortgage assistance programs. For instance, City of Chicago homeowners with a low or moderate income may receive up to $3,300 in aid.

Tip: Most city and state loan assistance programs have limited funds. If you need help, it’s best to apply as soon as possible as you have a higher probability of securing aid.

Talk to a housing counselor

If you can’t keep up with your mortgage payments and are facing foreclosure, consider speaking with a HUD-approved housing counselor.

This service is often provided for free, and the counselor can help review your repayment options to avoid foreclosure. To find a foreclosure avoidance counselor, use this search tool from the U.S. Department of Housing and Urban Development.

You can also contact your mortgage servicer to review your personalized choices too.

Refinance your mortgage

A mortgage refinance may not be the most practical option when you can’t pay your mortgage due to COVID. Mortgage forbearance and other assistance programs may provide immediate assistance and you won’t have to worry about paying hefty closing costs.

However, refinancing is an option to consider after your pandemic forbearance period ends and you want to change the terms of your mortgage. To do this, your loan will need to be current and your lender may have a minimum waiting period if you’re just exiting forbearance or another assistance program.

Good to know: In most cases, you may be eligible for standard refinancing after three post-forbearance payments. After that, it’s possible to reduce your monthly payment, interest rate, or both.

Depending on your situation, you could have to wait at least 12 months. However, it can be easier to waive this requirement when you claim COVID-19 hardship.

If you think refinancing is the right move, Credible makes the process easy. You can compare multiple lenders and see prequalified refinance rates in as little as three minutes without leaving our site.

Find out if refinancing is right for you

Actual rates from multiple lenders – In 3 minutes, get actual prequalified rates without impacting your credit score.Smart technology – We streamline the questions you need to answer and automate the document upload process.End-to-end experience – Complete the entire origination process from rate comparison up to closing, all on Credible.Find My Refi Rate
Checking rates will not affect your credit

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Financial Tips

Is Going to College Worth It? How to Decide

Kevin Smith

With education costs steadily rising, you might wonder if going to college is still worth it. Ultimately, there’s no clear answer to this question — it depends on your individual circumstances as well as the degree you choose and your job prospects after graduation.

Here’s how to decide if college is worth it:

Benefits and disadvantages of going to collegeWhy college could be worth itWhy college may not be worth itHow to cover the cost of collegeAlternatives to getting a college degree

Benefits and disadvantages of going to college

If you’re trying to decide whether college is worth it for you, here are a few pros and cons to keep in mind:

ProsConsCould help you prepare for certain professional fields where education is required (such as teaching or medicine)Will likely earn more money with a college degree compared to a high school diploma or GEDCollege graduates are less likely to be unemployed compared to people with less educationCan be expensive and leave you with student loan debtGetting a well-paid job after college isn’t guaranteedYou might not end up liking the degree and career path you choose

Why college could be worth it

Here are four potential benefits that could make college worth it:

Might need a degree for your career field

While some career paths don’t have specific education requirements, others do. For example, you’ll generally need a degree to work in medicine, engineering, physical therapy, or other regimented fields.

If you plan to work in a profession that has these requirements, then attending college will likely be a necessity.

Will likely earn more money

College graduates generally earn more compared to people who don’t have a degree. For example, in 2020, workers with a bachelor’s degree had median weekly earnings of $1,305 while workers with a high school diploma earned just $781, according to the Bureau of Labor Statistics.

If you want to earn a higher salary, then going to college could be worth it.

Less likely to be unemployed

In addition to earning higher wages, college graduates are also less likely to be unemployed compared to people with less education. For example, in March 2021, the unemployment rate for workers with a bachelor’s degree or higher was 3.7% compared to 6.7% for high school graduates with no college, according to the Bureau of Labor Statistics.

Tip: The connections that you make in college with peers, mentors, and professors could also help you find job opportunities once you enter the workforce.

If you hope to have steady employment, then attending college might be a good idea.

Learn More: College ROI: 6 Tools to Gauge the Return on Your Degree

Why college may not be worth it

There are also a few reasons why college might not be worth it, including:

Can be expensive and might require student loans

The cost of attending college has steadily risen over time, making it harder to pay for without taking out student loans. The average student loan debt for college students in 2021 was $39,351.

Keep in mind that this debt can end up being much higher for more expensive programs, such as law or medicine.

good job isn’t guaranteed

While earning a college degree can help you find employment, getting a good job after you graduate isn’t guaranteed.

Additionally, some professions don’t require a traditional four-year degree. If you’re interested in one of these jobs, then going to college likely isn’t worth the time or money.

Here are several jobs that might not require a bachelor’s degree:

Dental assistantElectricianPlumberProgrammerWebsite designer

You might not like your school or degree

Even if you attend school tours and learn as much as you can about a program before enrolling, there’s always a chance that the school or degree might not be a good fit for you. If this happens, you might end up dropping out of school.

Keep in mind: The dropout rate for undergraduate students is 40%, and 30% of them drop out before reaching their sophomore year, according to EducationData.org.

Additionally, 57% of student loan borrowers don’t end up graduating, according to OneClass — so if you drop out, you could still have student loan debt to pay off, which could be difficult if you don’t have the education to qualify for higher-paying jobs.

Check Out: Ranking: Return on Investment by University

How to cover the cost of college

If you decide that earning a degree is right for you but aren’t sure how to pay for college, follow these five steps:

1. Fill out the FAFSA

Your first step in paying for college should be completing the Free Application for Federal Student Aid (FAFSA). Your school will use your FAFSA results to determine what federal student loans and other federal aid you qualify for.

Tip: Even if you think you might not be eligible for federal aid, be sure to fill out the FAFSA anyway. You might be surprised to find out you qualify after all.

Learn More: How to Apply to College and When You Should Apply

2. Apply for scholarships and grants

Unlike student loans, college scholarships and grants don’t have to be repaid — which makes them a great way to pay for college. There’s no limit to how many scholarships and grants you can get, so it’s a good idea to apply for as many as you can.

Some organizations that might offer these awards include:

Nonprofit organizationsLocal and national businessesProfessional associations in your field

You might also be eligible for school-based scholarships depending on your FAFSA information.

Tip: You can use sites like Fastweb and Scholarships.com to easily search for scholarships that you might qualify for.

Check Out: 5 Steps to Take If You Can’t Afford College

3. Get a job or apply for a work-study program

You could also consider getting a job while you’re in school to help cover your expenses. Or you might participate in the federal work-study program, which provides part-time employment to undergraduate and graduate students with financial need.

Tip: If you decide to work while going to school, be sure to leave yourself enough time to study, too.

Learn More: When You Should Apply for a Student Loan

4. Take out federal student loans

If you need to borrow for school, it’s usually best to start with federal student loans. This is mainly because these loans come with federal benefits and protections — such as access to income-driven repayment plans and student loan forgiveness programs.

After you fill out the FAFSA, your school will send you a financial aid award letter detailing the federal loans and financial aid you qualify for. You can then choose which aid and loans to accept.

Tip: There are several student loan forgiveness programs available to federal student loan borrowers, which can help reduce the amount you’ll have to repay. To qualify for one of these programs, you’ll typically need to work in a certain field and make qualifying payments for a specific amount of time.

For example, if you’re employed at a nonprofit or government agency and make qualifying payments for 10 years, you could be eligible for Public Service Loan Forgiveness. Or if you’re a teacher, you might be able to have up to $17,500 of your federal loans forgiven through the Teacher Loan Forgiveness Program if you work in a low-income school full-time for five consecutive years.

Check Out: Subsidized vs. Unsubsidized Student Loans: Know the Difference

5. Use private student loans to fill any gaps

After you’ve exhausted your scholarship, grant, and federal student loan options, private student loans could help fill any financial gaps left over. These loans are offered by private lenders, such as online lenders as well as traditional banks and credit unions.

If you’re considering federal vs. private student loans, keep in mind that private loans don’t come with federal protections. However, they do offer some benefits of their own. For example, you can apply at any time, and you might be able to borrow more than you would with a federal loan.

Tip: You’ll typically need good to excellent credit to get approved for a private student loan — a good credit score is usually considered to be 700 or higher. There are also some lenders that offer student loans for bad credit, but these loans usually come with higher interest rates compared to good credit loans.

If you’re struggling to get approved, consider applying with a creditworthy cosigner to improve your chances. Even if you don’t need a cosigner to qualify, having one could get you a lower interest rate than you’d get on your own.

Rates and terms can vary by lender — so if you decide to take out a private loan, be sure to shop around and consider as many lenders as possible. This way, you can find the right loan for your needs.

Credible makes this easy: You can compare your prequalified rates from our partner lenders in the table below in just two minutes.

LenderFixed rates from (APR)Variable rates from (APR)Loan amountsLoan terms (years)Cosigners allowed

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
3.09%+
1.48%+$2,001 to $200,0007 to 15 years
(depending on loan type)YesFixed APR:
3.09%+Variable APR:
1.48%+Min. credit score:
540Loan amount:
$2,001 to $200,000 Loan terms (years):
5, 7, 10, 12, 15, 20Repayment options:
Full deferral, fixed/flat repayment, interest only, academic deferment, military deferment, forbearance, loans discharged upon death or disabilityFees:
NoneDiscounts:
0.25% to 1.00% automatic payment discount, 1% cash back graduation rewardEligibility:
Must be a U.S. citizen or permanent resident or DACA student enrolled at least half-time in a degree-seeking programCustomer service:
Email, phoneSoft credit check:
YesCosigner release:
After 24 monthsLoan servicer:
Launch Servicing, LLC

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
3.23%+1
1.03%+1$1,000 to $350,000
(depending on degree)5, 10, 15YesFixed APR:
3.23%+1Variable APR:
1.03%+1Min. credit score:
720Loan amount:
$1,000 to $350,000Loan terms (years):
5, 10, 15Loan types:
Any private or federal student loanRepayment options:
Full deferral, full monthly payment, interest only, immediate repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disabilityFees:
Late feeDiscounts:
Autopay, loyaltyEligibility:
Available in all 50 states (international students can apply with a creditworthy U.S. citizen or permanent resident cosigner)Customer service:
Email, phone, chatSoft credit check:
YesCosigner release:
After 36 monthsLoan servicer:
Firstmark Services

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
2.94%+2,3

0.99%+2,3$1,000 up to 100% of the school-certified cost of attendance5, 8, 10, 15YesFixed APR:
2.94%+2,3Variable APR:
0.99%+2,3Min. credit score:
Does not discloseLoan amount:
$1,000 up to cost of attendanceLoan terms (years):
5, 8, 10, 15Repayment options:
Full deferral, full monthly payment, fixed/flat repayment, interest only, immediate repayment, academic deferment, forbearance, loans discharged upon death or disabilityFees:
Late feeDiscounts:
AutopayEligibility:
Must be a U.S. citizen or permanent resident and be making satisfactory academic progress.Customer service:
Email, phoneSoft credit check:
YesCosigner release:
After 24 monthsLoan servicer:
College Ave Servicing LLC

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>3.75%+1.08%+$1,000 to $99,999 annually
($180,000 aggregate limit)7, 10, 15YesFixed APR:
3.75%+Variable APR:
1.08%+Min. credit score:
Does not discloseLoan amount:
$1,000 to $99,999 annually>($180,000 aggregate limit)Loan terms (years):
7, 10, 15Repayment options:
Full deferral, immediate repayment, interest-only repayment, flat/full repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disabilityFees:
NoneDiscounts:
AutopayEligibility:
Not available to residents of AZ, IA, or WICustomer service:
Phone, emailSoft credit check:
YesCosigner release:
After 36 monthsLoan servicer:
American Education ServicesMin. income:
Does not disclose

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
3.0%+7
2.17%+7$1,000 to $200,0007, 10, 15YesFixed APR:
3.0%+7Variable APR:
2.17%+7Min. credit score:
750Loan amount:
$1,000 to $200,000Loan terms (years):
7, 10, 15Repayment options:
Full deferral, full monthly payment, interest only, immediate repayment, academic deferment, loans discharged upon death or disabilityFees:
Late feeDiscounts:
AutopayEligibility:
Must be a U.S. citizen or permanent resident and have a minimum income of $30,000.Customer service:
Email, phoneSoft credit check:
YesCosigner release:
After 36 monthsLoan servicer:
Granite State Management & Resources (GSM&R)

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
3.83%+8
1.69%+8$1,001 up to 100% of school certified cost of attendance5, 10, 15YesFixed APR:
3.83%+8Variable APR:
1.69%+8Min. credit score:
670Loan amount:
$1,001 up to cost of attendanceLoan terms (years):
5, 10, 15Repayment options:
Full deferral, full monthly payment, interest only, immediate repayment, academic deferment, forbearanceFees:
Late feeDiscounts:
Autopay, reward for on-time graduationEligibility:
Must be an Indiana resident or a U.S. citizen attending an eligible Indiana schoolCustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
After 48 monthsLoan servicer:
American Education Services

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
3.75%+N/A$1,500 or $2,000 up to school’s certified cost of attendance
(depending on school type and minus other aid received)15YesFixed APR:
3.75%+Variable APR:
N/AMin. credit score:
670Loan amount:
$1,500 up to cost of attendance less aidLoan terms (years):
10, 15Repayment options:
Full deferral, interest only, immediate repayment, academic deferral, forbearanceFees:
NoneDiscounts:
NoneEligibility:
Must be a U.S. citizen or permanent resident and be making satisfactory academic progress.Customer service:
Email, phoneSoft credit check:
YesCosigner release:
After 48 monthsLoan servicer:
American Education Services (AES)

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
3.5% – 12.6% APR9
1.13% – 11.23% APR9Up to 100% of the school-certified cost of attendance10, 15YesFixed APR:
3.5% – 12.6% APR9Variable APR:
1.13% – 11.23% APR9Min. credit score:
Does not discloseLoan amount:
$1,000 up to cost of attendanceLoan terms (years):
10 to 15Repayment options:
Full deferral, fixed/flat repayment, interest only, academic deferment, forbearance, loans discharged upon death or disabilityFees:
Late feeDiscounts:
AutopayEligibility:
Must be a U.S. citizen or permanent resident. Also available to non-U.S. citizen students (including DACA students) attending a school located in the U.S. who apply with a qualifying cosigner.Customer service:
Phone, chatSoft credit check:
YesCosigner release:
After 12 consecutive on-time paymentsLoan servicer:
Sallie MaeCompare rates without affecting
your credit score. 100% free!

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Lowest APRs reflect autopay, loyalty, and interest-only repayment discounts where available | 1Citizens Disclosures | 2,3College Ave Disclosures | 7EDvestinU Disclosures | 8INvestEd Disclosures | 9Sallie Mae Disclosures

lternatives to getting a college degree

If you’re unsure whether getting a traditional four-year college degree is right for you (or if you aren’t quite ready for it), here are a few alternatives to consider:

Community collegeTaking classes at a community college can be much less expensive compared to what you’d pay at a four-year university. This could make it easier to explore various interests at a much lower cost. You could also think about completing your general education courses at a community college before transferring to a four-year school to reduce your overall expenses.Trade schoolThis type of school offers career-oriented programs in a shorter time frame than a traditional four-year degree — often at a lower cost, too. Some popular career programs provided by trade schools include auto body and maintenance, plumbing, welding, and more.Coding bootcampIf you’re interested in becoming a software developer or programmer, attending a coding bootcamp might be a good option. Coding bootcamps are intensive programs that generally take three to four months to complete. While these programs aren’t cheap, they’re typically less expensive than a four-year degree.Gap yearIf you’re not sure what you want to do career-wise, taking a gap year could be a good idea. You can use this time to explore your interests and enrich yourself before attending college.

If you decide that college is worth it for you and want to take out a private student loan, remember to consider as many lenders as you can to find the right loan for your needs. This is easy with Credible — you can compare your prequalified rates from multiple lenders in two minutes.

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The post Is Going to College Worth It? How to Decide appeared first on Credible.

Loans Serivces

How to Lower Credit Card Interest Rates: 4 Options

Kevin Smith

A high-interest credit card can be a major burden on your finances. The average credit card interest rate was 14.75% as of February 2021, according to the Federal Reserve — which could translate into steep interest charges if you only pay the minimum payment each month.

However, there are ways to potentially lower your credit card interest rate, which could help you save money while paying off your balance.

Here’s how to lower credit card your interest rate:

Check your credit scoreCall your card issuer and askApply for a balance transfer cardTake out a personal loan

1. Check your credit score

Your credit score helps determine what kind of interest rates you qualify for. In general, the better your credit score, the lower your rate.

If you’d like to get a lower interest rate, you’ll likely need good to excellent credit — a good credit score is usually considered to be 700 or higher. This is why it’s a good idea to check your credit before making the request so you know where you stand.

Tip: You can use a site like AnnualCreditReport.com to review your credit reports for free. If you find any errors, dispute them with the appropriate credit bureaus to potentially boost your credit score.

Learn More: How Personal Loans Impact Your Credit Score

2. Call your card issuer and ask

One way to possibly get a lower credit card rate is to simply ask your credit card issuer for a reduction. Generally, credit card issuers are friendlier to these types of requests if you have good credit and are a good customer who pays your bills on time.

When you make the call, a few points to mention include:

How long you’ve been with the companyYour history of on-time paymentsWhether your credit score has gone upWhether you’ve received better offers from other credit card companiesTip: When you’re speaking to your customer service representative, respectfully explain the reason for your call (being nice and pleasant goes a long way!). Ask about lowering your interest rate and what steps you need to take in order to get that taken care of.

Also keep in mind that your request might not be approved. If this happens, don’t be discouraged — ask what you need to do to lower your interest rate and when you can request a reduced rate again in the future.

Check Out: How to Get Out of Credit Card Debt

3. Apply for a balance transfer card

A balance transfer card could be a good option if your current credit card company doesn’t approve you for a lower interest rate on your card. With a balance transfer card, you can move your balance from one card to another one with a lower rate.

Tip: Some balance transfer cards come with 0% APR introductory offers. This means you could avoid paying interest if you can repay your balance before this period ends. However, keep in mind that if you can’t pay off the card in time, you could get stuck with hefty interest charges.

Learn More: Personal Loan vs. Credit Card

4. Take out a personal loan

Another option is taking out a personal loan to pay off your credit card debt — a process known as debt consolidation. Personal loans often have lower credit card interest rates than credit cards, which means you could save money on interest charges while repaying your debt.

Tip: You’ll typically need good to excellent credit to get approved for a personal loan as well as to qualify for a low interest rate. While some lenders offer debt consolidation loans for bad credit, these personal loans often come with higher interest rates compared to good credit loans.

If you’re struggling to get approved, consider applying with a cosigner. Not all lenders allow cosigners on personal loans, but some do. Even if you don’t need a cosigner to qualify, having one could get you a lower interest rate than you’d get on your own.

If you decide to take out a personal loan, it’s important to think about how much that loan will cost you. This way, you can be prepared for any added expenses. You can estimate how much you’ll pay for a loan using our personal loan calculator below.

Enter your loan information to calculate how much you could pay

Loan amountEnter the total amount borrowedInterest rateEnter your annual interest rateorLoan termEnter the amount of time you have to repay your loanyears
Total Payment>
Total Interest>
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With a>
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Balance transfer card vs. personal loan

Balance transfer cards and personal loans are both options to consolidate credit card debt and hopefully save money on interest along the way. If you’re considering a balance transfer credit card vs. personal loan, here are a few pros and cons of each to keep in mind:

Pros of balance transfer credit cards

0% APR: Some balance transfer credit cards come with a 0% APR introductory offer, which means you can avoid paying interest if you pay off your balance before this period ends.Could help build your credit: If you make all of your payments on time, you might see your credit improve — which could help you qualify for better rates in the future.Rewards or perks: Depending on the card you choose, you might have access to various rewards or perks, such as cash back or points.

Check Out: How to Pay Off Credit Card Debt Fast

Cons of balance transfer credit cards

Balance transfer fees: Most cards charge a balance transfer fee — generally from 3% to 5% — that could increase your balance.Higher interest rates: Credit cards generally have higher interest rates than personal loans. While you might be able to take advantage of a 0% APR introductory offer — depending on the card — carrying a balance beyond this period could lead to steep interest charges if you don’t pay off the card by your due date each month.Might be tempting to rack up a balance: A balance transfer card is still a credit card. Even if you pay your initial balance off, it could be tempting to rack up a balance again.

Learn More: How Debt Consolidation Loans Can Help Your Credit Score

Pros of personal loans

Lower interest rates: Personal loan rates are usually lower compared to credit cards. This could save you money on interest charges and even help you pay off your loan faster.Fixed monthly payments: Personal loans generally have fixed interest rates, which means your monthly payments will stay the same throughout the life of the loan.Options for poor or fair credit: While many personal loan lenders require good to excellent credit, there are others that offer personal loans for bad credit.

Check Out: Small Personal Loans: Compare Top Lenders Today

Cons of personal loans

Might come with fees: Some lenders charge fees on personal loans, such as origination or late fees. This can add to your overall loan cost.Can have larger payments: Depending on your repayment terms, you might end up with higher monthly payments on a personal loan compared to a credit card. Before you sign for a loan, be sure your new payments will fit comfortably in your budget.No rewards: Unlike credit cards, personal loans don’t come with any rewards.

Learn More: How to Check If a Personal Loan Company Is Legitimate

How to take out a personal loan

If you decide to take out a personal loan to help reduce how much you pay in credit card interest, follow these four steps:

Check your credit. Like with credit cards, personal loan lenders will review your credit to determine your creditworthiness as well as what rates you qualify for. To see what shape your credit is in before you apply, use a site like AnnualCreditReport.com to review your credit reports for free. If you find any errors, dispute them with the appropriate credit bureaus to potentially boost your credit score.Compare lenders and pick a loan option. Be sure to consider as many lenders as possible to find the right loan for your needs. Consider not only interest rates but also repayment terms and any fees charged by the lender. After researching lenders, choose the loan option that works best for you.Complete the application. Once you’ve picked a personal loan lender, you’ll need to fill out a full application and submit any required documentation, such as tax returns or pay stubs.Get your funds. If you’re approved, the lender will have you sign for the loan so the money can be released to you. The time to fund for a personal loan is usually about one week — though some lenders will fund loans as soon as the same or next business day after approval. There are also lenders that will pay your creditors directly if you’d prefer.

Before you take out a personal loan, remember to consider as many lenders as you can to find the right loan for you. Credible makes this easy — you can compare your prequalified rates from our partner lenders in the table below in two minutes

LenderFixed ratesLoan amountsMin. credit scoreLoan terms (years)

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
9.95% – 35.99% APR$2,000 to $35,0005502, 3, 4, 5*Fixed APR:
9.95% – 35.99% APRVariable APR:
N/AMin. credit score:
550Loan amount:
$2,000 to $35,000**Loan terms (years):
2, 3, 4, 5*Time to fund:
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)Fees:
Origination feeDiscounts:
AutopayEligibility:
Available in all states except CO, IA, HI, VT, NV NY, WVCustomer service:
Phone, emailSoft credit check:
YesLoan servicer:
AvantLoan Uses:
Debt consolidation, emergency expense, life event, home improvement, and other purposesMin. Income:
$1,200 monthly

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
6.79% – 17.99% APR$5,000 to $35,0007401, 2, 3, 4, 5Fixed APR:
6.79% – 17.99% APRVariable APR:
N/AMin. credit score:
740Loan amount:
$5,000 to $35,000Loan terms (years):
1, 2, 3, 4, 5Time to fund:
Next business dayFees:
No prepayment penaltyDiscounts:
NoneEligibility:
Available in all 50 statesCustomer service:
PhoneSoft credit check:
YesMin. Income:
Does not discloseLoan Uses:
Debt consolidation, home improvement, self-employment, and other purposes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
4.99% – 35.99% APR$5,000 to $35,0006002, 3, 4, 5Fixed APR:
4.99% – 35.99% APRVariable APR:
N/AMin. credit score:
600Loan amount:
$2,000 to $50,000Loan terms (years):
2, 3, 4, 5Time to fund:
As soon as 1 – 3 business days after successful verificationFees:
Origination feeDiscounts:
NoneEligibility:
Available in all states except DC, IA, VT, and WVCustomer service:
PhoneSoft credit check:
YesLoan servicer:
Best Egg and Blue Ridge BankMin. Income:
NoneLoan Uses:
Credit card refinancing, debt consolidation, home improvement, and other purposes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
6.99% – 24.99% APR$2,500 to $35,0006603, 4, 5, 6, 7Fixed APR:
6.99% – 24.99% APRMin. credit score:
660Loan amount:
$2,500 to $35,000Loan terms (years):
3, 4, 5, 6, 7Time to fund:
As soon as the next business day after acceptanceFees:
Late feeDiscounts:
NoneEligibility:
 Available in all 50 statesCustomer service:
PhoneSoft credit check:
YesLoan Uses:
Auto repair, credit card refinancing, debt consolidation, home remodel or repair, major purchase, medical expenses, taxes, vacation, and wedding

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
7.99% – 29.99% APR$10,000 to $50,000Not disclosed by lender2, 3, 4, 5Fixed APR:
7.99% – 29.99% APRMin. credit score:
Does not discloseLoan amount:
$10,000 to $50,000Loan terms (years):
2, 3, 4, 5Time to fund:
As soon as 2 business daysFees:
Origination feeDiscounts:
NoEligibility:
Available in all states except CO, CT, HI, KS, NH, NY, ND, OR, VT, WV, WI, and WYCustomer service:
PhoneSoft credit check:
YesMin. Income:
NoneLoan Uses:
Debt consolidation, home improvement, wedding, travel, medical expenses, and other purposes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
7.04% – 35.89% APR$1,000 to $40,0006003, 5Fixed APR:
7.04% – 35.89% APRMin. credit score:
600Loan amount:
$1,000 to $40,000Loan terms (years):
3, 5Time to fund:
Usually takes about 2 daysFees:
Origination feeDiscounts:
NoneEligibility:
Available in all 50 statesCustomer service:
Phone, emailSoft credit check:
YesLoan servicer:
LendingClub BankMin. Income:
NoneLoan Uses:
Debt consolidation, paying off credit cards, home improvement, pool loans, vacations, and other purposes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
15.49% – 35.99% APR$2,000 to $36,5005802, 3, 4Fixed APR:
15.49% – 35.99% APRMin. credit score:
580Loan amount:
$2,000 to $36,500Loan terms (years):
2, 3, 4Time to fund:
As soon as the next business dayFees:
Origination feeDiscounts:
AutopayEligibility:
Available in all states except NV and WVCustomer service:
Phone, emailSoft credit check:
YesMin. Income:
$20,000Loan Uses:
Home improvement, consolidate debt, credit card refinancing, relocate, make a large purchase, and other purposes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
2.49% – 19.99% APR$5,000 to $100,0006602, 3, 4, 5, 6, 7
(up to 12 years for home improvement loans)Fixed APR:
2.49% – 19.99% APRMin. credit score:
660Loan amount:
$5,000 to $100,000Loan terms (years):
2, 3, 4, 5, 6, 7*Time to fund:
As soon as the same business dayFees:
NoneDiscounts:
AutopayEligibility:
Available in all states except RI and VTCustomer service:
Phone, emailSoft credit check:
NoLoan servicer:
LightStreamMin. Income:
Does not discloseLoan Uses:
Credit card refinancing, debt consolidation, home improvement, and other purposes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
6.99% – 19.99% APR1$3,500 to $40,0002660
(TransUnion FICO®️ Score 9)3, 4, 5, 6, 7Fixed APR:
6.99% – 19.99% APR1Min. credit score:
660
(TransUnion FICO®️ Score 9)Loan amount:
$3,500 to $40,0002Loan terms (years):
3, 4, 5, 6Time to fund:
Many Marcus customers receive funds in as little as three daysFees:
NoneDiscounts:
AutopayEligibility:
Available in all 50 statesCustomer service:
PhoneSoft credit check:
YesLoan servicer:
Goldman SachsMin. Income:
$30,000Loan Uses:
Credit card refinancing, debt consolidation, home improvement, major purchase, and other purposes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
18.0% – 35.99% APR$1,500 to $20,000None2, 3, 4, 5Fixed APR:
18.0% – 35.99% APRMin. credit score:
NoneLoan amount:
$1,500 to $20,000Loan terms (years):
2, 3, 4, 5Time to fund:
As soon as the same day, but usually requires a visit to a branch officeFees:
Origination feeDiscounts:
NoneEligibility:
Must have photo I.D. issued by U.S. federal, state or local governmentCustomer service:
Phone, emailSoft credit check:
YesMin. Income:
Does not disclose

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
5.99% – 17.99% APR$600 to $50,000
(depending on loan term)6701, 2, 3, 4, 5Fixed APR:
5.99% – 17.99% APRMin. credit score:
670Loan amount:
$600 to $50,000*Loan terms (years):
1, 2, 3, 4, 5Time to fund:
2 to 4 business days after verificationFees:
NoneDiscounts:
NoneEligibility:
Does not discloseCustomer service:
Phone, emailSoft credit check:
NoMin. Income:
Does not discloseLoan Uses:
Debt consolidation, home improvement, transportation, medical, dental, life events

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
6.95% – 35.99% APR$2,000 to $40,0006403, 5Fixed APR:
6.95% – 35.99% APRMin. credit score:
640Loan amount:
$2,000 to $40,000Loan terms (years):
3, 5Time to fund:
As soon as one business dayFees:
Origination feeDiscounts:
NoneEligibility:
Available in all states except IA, ND, WVCustomer service:
Phone, emailSoft credit check:
YesMin. Income:
NoneLoan Uses:
Debt consolidation, home improvement, vehicles, small business, new baby expenses, and other purposes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
5.99% – 18.83% APR$5,000 to $100,000Does not disclose2, 3, 4, 5, 6, 7Fixed APR:
5.99% – 18.83% APRMin. credit score:
Does not discloseLoan amount:
$5,000 to $100,000Loan terms (years):
2, 3, 4, 5, 6, 7Time to fund:
3 business daysFees:
NoneDiscounts:
AutopayEligibility:
Available in all states except MSCustomer service:
Phone, emailSoft credit check:
YesMin. Income:
Does not discloseLoan Uses:
Solely for personal, family, or household uses

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
8.93% – 35.93% APR7$1,000 to $50,0005603 to 5 years 8Fixed APR:
8.93% – 35.93% APR7Min. credit score:
560Loan amount:
$1,000 to $50,000Loan terms:
3 to 5 years 8Time to fund:
Within one day, once approved9Loan types:
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchasesFees:
Origination feeDiscounts:
AutopayEligibility:
A U.S. citizen or permanent resident; not available in DC, SC, WVCustomer service:
Phone, emailSoft credit check:
Yes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
5.94% – 35.97% APR$1,000 to $50,0005602, 3, 5, 6Fixed APR:
5.94% – 35.97% APRMin. credit score:
560Loan amount:
$1,000 to $50,000*Loan terms (years):
2, 3, 5, 6Time to fund:
Within a day of clearing necessary verificationsFees:
Origination feeDiscounts:
AutopayEligibility:
Available in all states except West VirginiaCustomer service:
EmailSoft credit check:
YesMin. Income:
Does not discloseLoan Uses:
Debt consolidation, credit card refinancing, home improvement, and other purposes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
6.46% – 35.99% APR4$1,000 to $50,00055803 to 5 years4Fixed APR:
6.46% – 35.99% APR4Min. credit score:
580Loan amount:
$1,000 to $50,0005Loan terms (years):
3 to 5 years4Time to fund:
As fast as 1 business day6Fees:
Origination feeDiscounts:
NoneEligibility:
Available in all 50 statesCustomer service:
Phone, emailSoft credit check:
YesMin. Income:
$12,000Loan Uses:
Payoff credit cards, consolidate debt, take a course or bootcamp, relocate, make a large purchase, and other purposesCompare rates from these lenders without affecting your credit score. 100% free!

Compare Now

Trustpilot
All APRs reflect autopay and loyalty discounts where available | LightStream disclosure | Read more about Rates and Terms

Should you close your credit card?

After you’ve paid off a credit card, you might consider closing it. However, keep in mind that if you close a credit card account, you might see your credit score drop. This is because a closed account could:

Raise your credit utilization ratio, as you might have less available credit compared to how much you oweLower the average age of your credit accounts, especially if you’ve had the account for an extended period of time

However, if you continue making payments on time on your other credit accounts, your score will likely bounce back within a few months.

Tip: Ultimately, whether to close an account depends on your individual circumstances. For example, if you feel that keeping a credit card account open could lead you into more debt, then it might be better to close the account and deal with the potential credit score changes.

Keep Reading: Pay Off Credit Card Debt ASAP With a Personal Loan
About Rates and Terms: Rates for personal loans provided by lenders on the Credible platform range between 4.99-35.99% APR with terms from 12 to 84 months. Rates presented include lender discounts for enrolling in autopay and loyalty programs, where applicable. Actual rates may be different from the rates advertised and/or shown and will be based on the lender’s eligibility criteria, which include factors such as credit score, loan amount, loan term, credit usage and history, and vary based on loan purpose. The lowest rates available typically require excellent credit, and for some lenders, may be reserved for specific loan purposes and/or shorter loan terms. The origination fee charged by the lenders on our platform ranges from 0% to 8%. Each lender has their own qualification criteria with respect to their autopay and loyalty discounts (e.g., some lenders require the borrower to elect autopay prior to loan funding in order to qualify for the autopay discount). All rates are determined by the lender and must be agreed upon between the borrower and the borrower’s chosen lender. For a loan of $10,000 with a three year repayment period, an interest rate of 7.99%, a $350 origination fee and an APR of 11.51%, the borrower will receive $9,650 at the time of loan funding and will make 36 monthly payments of $313.32. Assuming all on-time payments, and full performance of all terms and conditions of the loan contract and any discount programs enrolled in included in the APR/interest rate throughout the life of the loan, the borrower will pay a total of $11,279.43. As of March 12, 2019, none of the lenders on our platform require a down payment nor do they charge any prepayment penalties.

The post How to Lower Credit Card Interest Rates: 4 Options appeared first on Credible.

Loans Serivces

How to Pay Off $10,000 in Credit Card Debt

Kevin Smith

Facing a large amount of credit card debt can feel overwhelming, especially since it might take a while to pay off. If you have $10,000 in credit card debt, it could take over a decade to repay if you make only minimum payments.

However, there are a few strategies that could make it easier to pay off $10,000 in credit card debt.

Here are four ways to pay off $10,000 in credit card debt:

Consolidate your debtWork with your credit card companyChoose a debt payoff strategyReevaluate your current spending

1. Consolidate your debt

Depending on your credit, consolidating your credit card debt might get you a lower interest rate — this could save you money on interest as well as potentially help you pay off your debt more quickly.

Here are a few options for consolidating credit card debt:

Take out a credit card consolidation loan

Best if: You have multiple high-interest credit cards to consolidate.

A credit card consolidation loan is a type of personal loan specifically used to consolidate credit card debt. If you have good to excellent credit, you might qualify for a lower interest rate than what you’re currently paying — this could save you hundreds or even thousands of dollars on interest charges.

Or you could opt to extend your repayment term to lower your monthly payments and lessen the strain on your budget. Just keep in mind that choosing a longer term means you’ll pay more in interest over time.

For example, here’s how much someone might save by consolidating their credit card debt with a personal loan:

Pros

Fixed rates: Personal loan rates are fixed, which means your payments will stay the same throughout the life of the loan. Additionally, personal loans usually have lower interest rates compared to credit cards.Could get a lower interest rate: If you have good credit, you might get a lower interest rate with a credit card consolidation loan.Fast loan process: Many personal loan lenders provide a quick and easy application process. If you’re approved, you’ll generally have your funds within a week — though some lenders will fund loans as soon as the same or next business day after approval.

Cons

Fewer options for poor or fair credit: You’ll typically need good to excellent credit to qualify for a personal loan — especially if you want to get a lower interest rate. There are also several lenders that offer personal loans for bad credit, but these loans usually come with higher interest rates compared to good credit loans.Might come with fees: Some lenders charge fees on personal loans, such as origination or late fees.No perks or rewards: Personal loans don’t offer the perks and rewards that sometimes come with credit cards.Tip: If you have bad credit and are struggling to get approved for a personal loan, consider applying with a creditworthy cosigner to improve your chances. Not all lenders allow cosigners on personal loans, but some do.

Even if you don’t need a cosigner to qualify, having one might get you a lower interest rate than you’d get on your own.

If you decide to take out a personal loan to consolidate credit card debt, be sure to consider as many lenders as possible to find the right loan for your needs.

Credible makes this easy — you can compare your prequalified rates from our partner lenders in the table below in two minutes.

LenderFixed ratesLoan amountsMin. credit scoreLoan terms (years)

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
9.95% – 35.99% APR$2,000 to $35,0005502, 3, 4, 5*Fixed APR:
9.95% – 35.99% APRVariable APR:
N/AMin. credit score:
550Loan amount:
$2,000 to $35,000**Loan terms (years):
2, 3, 4, 5*Time to fund:
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)Fees:
Origination feeDiscounts:
AutopayEligibility:
Available in all states except CO, IA, HI, VT, NV NY, WVCustomer service:
Phone, emailSoft credit check:
YesLoan servicer:
AvantLoan Uses:
Debt consolidation, emergency expense, life event, home improvement, and other purposesMin. Income:
$1,200 monthly

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
6.79% – 17.99% APR$5,000 to $35,0007401, 2, 3, 4, 5Fixed APR:
6.79% – 17.99% APRVariable APR:
N/AMin. credit score:
740Loan amount:
$5,000 to $35,000Loan terms (years):
1, 2, 3, 4, 5Time to fund:
Next business dayFees:
No prepayment penaltyDiscounts:
NoneEligibility:
Available in all 50 statesCustomer service:
PhoneSoft credit check:
YesMin. Income:
Does not discloseLoan Uses:
Debt consolidation, home improvement, self-employment, and other purposes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
4.99% – 35.99% APR$2,000 to $50,0006003, 5Fixed APR:
4.99% – 35.99% APRVariable APR:
N/AMin. credit score:
600Loan amount:
$2,000 to $50,000Loan terms (years):
2, 3, 4, 5Time to fund:
As soon as 1 – 3 business days after successful verificationFees:
Origination feeDiscounts:
NoneEligibility:
Available in all states except DC, IA, VT, and WVCustomer service:
PhoneSoft credit check:
YesLoan servicer:
Best Egg and Blue Ridge BankMin. Income:
NoneLoan Uses:
Credit card refinancing, debt consolidation, home improvement, and other purposes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
6.99% – 24.99% APR$2,500 to $35,0006603, 4, 5, 6, 7Fixed APR:
6.99% – 24.99% APRMin. credit score:
660Loan amount:
$2,500 to $35,000Loan terms (years):
3, 4, 5, 6, 7Time to fund:
As soon as the next business day after acceptanceFees:
Late feeDiscounts:
NoneEligibility:
 Available in all 50 statesCustomer service:
PhoneSoft credit check:
YesLoan Uses:
Auto repair, credit card refinancing, debt consolidation, home remodel or repair, major purchase, medical expenses, taxes, vacation, and wedding

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
7.99% – 29.99% APR$10,000 to $35,000Not disclosed by lender2, 3, 4, 5Fixed APR:
7.99% – 29.99% APRMin. credit score:
Does not discloseLoan amount:
$10,000 to $50,000Loan terms (years):
2, 3, 4, 5Time to fund:
As soon as 2 business daysFees:
Origination feeDiscounts:
NoEligibility:
Available in all states except CO, CT, HI, KS, NH, NY, ND, OR, VT, WV, WI, and WYCustomer service:
PhoneSoft credit check:
YesMin. Income:
NoneLoan Uses:
Debt consolidation, home improvement, wedding, travel, medical expenses, and other purposes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
7.04% – 35.89% APR$1,000 to $40,0006003, 5Fixed APR:
7.04% – 35.89% APRMin. credit score:
600Loan amount:
$1,000 to $40,000Loan terms (years):
3, 5Time to fund:
Usually takes about 2 daysFees:
Origination feeDiscounts:
NoneEligibility:
Available in all 50 statesCustomer service:
Phone, emailSoft credit check:
YesLoan servicer:
LendingClub BankMin. Income:
NoneLoan Uses:
Debt consolidation, paying off credit cards, home improvement, pool loans, vacations, and other purposes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
15.49% – 35.99% APR$2,000 to $36,5005802, 3, 4Fixed APR:
15.49% – 35.99% APRMin. credit score:
580Loan amount:
$2,000 to $36,500Loan terms (years):
2, 3, 4Time to fund:
As soon as the next business dayFees:
Origination feeDiscounts:
AutopayEligibility:
Available in all states except NV and WVCustomer service:
Phone, emailSoft credit check:
YesMin. Income:
$20,000Loan Uses:
Home improvement, consolidate debt, credit card refinancing, relocate, make a large purchase, and other purposes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
2.49% – 19.99% APR$5,000 to $100,0006602, 3, 4, 5, 6, 7
(up to 12 years for home improvement loans)Fixed APR:
2.49% – 19.99% APRMin. credit score:
660Loan amount:
$5,000 to $100,000Loan terms (years):
2, 3, 4, 5, 6, 7*Time to fund:
As soon as the same business dayFees:
NoneDiscounts:
AutopayEligibility:
Available in all states except RI and VTCustomer service:
Phone, emailSoft credit check:
NoLoan servicer:
LightStreamMin. Income:
Does not discloseLoan Uses:
Credit card refinancing, debt consolidation, home improvement, and other purposes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
6.99% – 19.99% APR1$3,500 to $40,0002660
(TransUnion FICO®️ Score 9)3, 4, 5, 6, 7Fixed APR:
6.99% – 19.99% APR1Min. credit score:
660
(TransUnion FICO®️ Score 9)Loan amount:
$3,500 to $40,0002Loan terms (years):
3, 4, 5, 6Time to fund:
Many Marcus customers receive funds in as little as three daysFees:
NoneDiscounts:
AutopayEligibility:
Available in all 50 statesCustomer service:
PhoneSoft credit check:
YesLoan servicer:
Goldman SachsMin. Income:
$30,000Loan Uses:
Credit card refinancing, debt consolidation, home improvement, major purchase, and other purposes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
18.0% – 35.99% APR$1,500 to $20,000None2, 3, 4, 5Fixed APR:
18.0% – 35.99% APRMin. credit score:
NoneLoan amount:
$1,500 to $20,000Loan terms (years):
2, 3, 4, 5Time to fund:
As soon as the same day, but usually requires a visit to a branch officeFees:
Origination feeDiscounts:
NoneEligibility:
Must have photo I.D. issued by U.S. federal, state or local governmentCustomer service:
Phone, emailSoft credit check:
YesMin. Income:
Does not disclose

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
5.99% – 24.99% APR$5,000 to $40,0006002, 3, 4, 5Fixed APR:
5.99% – 24.99% APRMin. credit score:
600Loan amount:
$5,000 to $40,000Loan terms (years):
2, 3, 4, 5Time to fund:
As soon as 2 – 5 business days after verificationFees:
Origination feeDiscounts:
NoneEligibility:
Available in all states except MA, NV, and OHCustomer service:
Phone, email, chatSoft credit check:
YesMin. Income:
NoneLoan Uses:
Debt consolidation and credit card consolidation only

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
5.99% – 17.99% APR$600 to $50,000
(depending on loan term)6701, 2, 3, 4, 5Fixed APR:
5.99% – 17.99% APRMin. credit score:
670Loan amount:
$600 to $50,000*Loan terms (years):
1, 2, 3, 4, 5Time to fund:
2 to 4 business days after verificationFees:
NoneDiscounts:
NoneEligibility:
Does not discloseCustomer service:
Phone, emailSoft credit check:
NoMin. Income:
Does not discloseLoan Uses:
Debt consolidation, home improvement, transportation, medical, dental, life events

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
6.95% – 35.99% APR$2,000 to $40,0006403, 5Fixed APR:
6.95% – 35.99% APRMin. credit score:
640Loan amount:
$2,000 to $40,000Loan terms (years):
3, 5Time to fund:
As soon as one business dayFees:
Origination feeDiscounts:
NoneEligibility:
Available in all states except IA, ND, WVCustomer service:
Phone, emailSoft credit check:
YesMin. Income:
NoneLoan Uses:
Debt consolidation, home improvement, vehicles, small business, new baby expenses, and other purposes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
5.99% – 18.83% APR$5,000 to $100,000Does not disclose2, 3, 4, 5, 6, 7Fixed APR:
5.99% – 18.83% APRMin. credit score:
Does not discloseLoan amount:
$5,000 to $100,000Loan terms (years):
2, 3, 4, 5, 6, 7Time to fund:
3 business daysFees:
NoneDiscounts:
AutopayEligibility:
Available in all states except MSCustomer service:
Phone, emailSoft credit check:
YesMin. Income:
Does not discloseLoan Uses:
Solely for personal, family, or household uses

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
8.93% – 35.93% APR7$1,000 to $20,0005603, 5Fixed APR:
8.93% – 35.93% APR7Min. credit score:
560Loan amount:
$1,000 to $50,000Loan terms:
3 to 5 years 8Time to fund:
Within one day, once approved9Loan types:
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchasesFees:
Origination feeDiscounts:
AutopayEligibility:
A U.S. citizen or permanent resident; not available in DC, SC, WVCustomer service:
Phone, emailSoft credit check:
Yes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
5.94% – 35.97% APR$1,000 to $50,0005602, 3, 5, 6Fixed APR:
5.94% – 35.97% APRMin. credit score:
560Loan amount:
$1,000 to $50,000*Loan terms (years):
2, 3, 5, 6Time to fund:
Within a day of clearing necessary verificationsFees:
Origination feeDiscounts:
AutopayEligibility:
Available in all states except West VirginiaCustomer service:
EmailSoft credit check:
YesMin. Income:
Does not discloseLoan Uses:
Debt consolidation, credit card refinancing, home improvement, and other purposes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


View details>
6.46% – 35.99% APR4$1,000 to $50,00055803 to 5 years4Fixed APR:
6.46% – 35.99% APR4Min. credit score:
580Loan amount:
$1,000 to $50,0005Loan terms (years):
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As fast as 1 business day6Fees:
Origination feeDiscounts:
NoneEligibility:
Available in all 50 statesCustomer service:
Phone, emailSoft credit check:
YesMin. Income:
$12,000Loan Uses:
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Use a balance transfer card

Best if: You plan to pay off your balance quickly.

Another option for consolidating credit card debt is a balance transfer. This process lets you move your balance from one credit card to another.

Some balance transfer cards come with a 0% APR introductory offer, which means you could avoid paying interest if you can repay your debt before this period ends — usually within nine to 21 months, depending on the card.

However, if you can’t pay off your debt in time, you could stick with some hefty interest charges.

Pros

0% APR offer: Depending on the card you choose, you might be able to take advantage of a 0% APR introductory period and avoid paying interest for a certain period of time. This could be especially helpful if you plan to repay your balance quickly.Could help establish credit history: If you keep the balance transfer card open after paying off your initial debt, you can continue to use it to build your positive payment history and improve your credit.Might offer rewards or other perks: Some balance transfer cards provide various rewards or perks, such as cash back or travel points.

Cons

Might come with fees: In many cases, you’ll have to pay a balance transfer fee. This can range from 3% to 5% of the balance you want to transfer.Could come with high interest charges: If you don’t choose a card with a 0% APR introductory offer or can’t pay off your balance before this period ends, you could end up paying a large amount of interest.Might lead to further debt: Although a balance transfer card could help you manage your debt, it’s still another credit card — for some borrowers, it might be tempting to rack up a balance again.

Learn More: Refinancing Credit Card Debt and Getting Approved: Guide

Tap into your home’s equity

Best if: You own a home with at least 15% to 20% equity.

If you’re a homeowner, you might be able to tap into your home’s equity with a home equity loan or home equity line of credit (HELOC) and use the funds to consolidate your credit card debt.

With a home equity loan, you’ll get a lump sum that you can use how you wish.With a HELOC, you’ll have access to a revolving credit line that you can repeatedly draw on and pay off.

Because these loans are secured by your home, they often come with lower interest rates compared to credit cards or personal loans.

However, keep in mind that if you can’t keep up with your payments, you risk losing your house.

Pros

Lower interest rates: Because there’s less risk to the lender, home equity loans and HELOCs tend to have lower interest rates than credit cards or personal loans.Long repayment term: You could have five to 30 years to repay a home equity loan or up to 20 years to pay off a HELOC.Can use funds for any purpose: You can use the funds from a home equity loan or HELOC for almost any purpose. This could be helpful if you have other expenses to cover in addition to your credit card debt.

Cons

Risk of foreclosure: If you can’t make your payments on a home equity loan or HELOC, the lender could seize your home.Closing costs: Home equity loans and HELOCs can come with similar closing costs as a traditional mortgage — often 2% to 5%.Longer process: Depending on the complexity of the loan, it could take a few weeks for your loan to be processed and funded.

Check Out: Home Equity Loan vs. Personal Loan: Which Is Right for You?

2. Work with your credit card company

In some cases, you might be able to work out an arrangement with your credit card company that could help you tackle your debt. Here are a few options to consider:

sk your credit card company about a hardship plan

Best if: Your account is in good standing.

If your credit card payments are becoming too difficult to manage, it’s a good idea to call your card company to see if any assistance is available to you.

For example, several credit card companies offer hardship plans, which often provide a lower interest rate, reduced monthly payments, and lower fees.

Generally, credit card companies prefer to work with long-time customers who haven’t missed any payments. If you think you might not be able to make a payment, be sure to reach out to your card issuer as soon as possible.

Pros

Could lower your interest rate: A hardship plan could temporarily provide more optimal terms, such as a lower interest rate.Fixed repayment: Hardship plans usually come with fixed repayment schedules, which could make it easier to budget for your payments.Maintain good standing: If you reach out to your credit card company before you miss any payments, you’ll have a better chance of keeping your account in good standing with the company.

Cons

Might hurt your credit: Your card issuer might suspend or close your account for the duration of the hardship plan, which could lead to a decrease in your credit score.Could make it hard to access more credit: If your card issuer reports your hardship plan to the credit bureaus, you might have a harder time qualifying for other loans and credit in the future.Can’t combine multiple cards: If you have debt on multiple credit cards and want to sign up for a hardship plan, you’ll need to contact each card issuer individually.

Learn More: Coronavirus Hardship Loans: 7 Options to Consider

Try to negotiate a debt settlement

Best if: You have a sum of cash that you can use to negotiate a settlement for less than what you owe.

Debt settlement is an arrangement where your credit card company agrees to accept a lump sum or number of payments for less than what you owe in order to settle the account.

You can approach your creditor to discuss settlement on your own, or you could involve one of the several for-profit companies that offer debt settlement services.

Keep in mind: For-profit debt settlement companies often ask you to stop making payments on your accounts while they negotiate with your creditors, which could severely damage your credit.

Pros

Might be able to pay off your debt for less than what you owe: If your card issuer accepts the debt settlement plan, you could pay off your debt for less than what you actually owe.Can be done on your own: While there are several companies that could help you pursue debt settlement, you also have the option to work with your card issuer on your own.Could help you avoid bankruptcy: If you don’t want to file for bankruptcy, debt settlement might be a helpful option.

Cons

Could damage your credit: Your credit report will reflect that you settled an account for less than what you owed, which could hurt your credit. Your credit could also be damaged if you work with a for-profit company and agree to stop making payments.Potential fees: Debt settlement companies usually charge a fee for their services ranging from 20% to 25% of your final settlement amount.Might not work: There’s no guarantee that your card issuer will accept the settlement offer.

Check Out: How to Get Out of Credit Card Debt

Consider a debt management plan

Best if: You want professional guidance on the best way to repay your debt.

If you’re not sure how to tackle your debt, signing up for a debt management plan might be a good idea. With this option, a nonprofit debt counseling agency — such as the National Foundation for Credit Counseling — will help you come to an agreement with your creditors.

Debt management plans typically last for three to five years until your debt is paid off. During this time, you’ll make your payments to the agency, which will send the agreed-upon amounts to your creditors.

Pros

Professional help to manage your debt: Credit counselors offer a variety of resources and educational tools to help you take control of your debt and create good credit habits.Might come with lower interest rate and fees: Your creditors might agree to lower your interest rates and reduce or waive fees if you sign up for a debt management plan.Could improve your credit score: Making on-time payments under a debt management plan could help you build a positive payment history and improve your credit score over time.

Cons

Might close your credit cards: Any credit cards included in a debt management plan will likely have to be closed, meaning you’ll have less access to credit. Additionally, you might not be permitted to apply for new credit for the duration of the plan.Could come with fees: Depending on the agency you choose, you might have to pay upfront and monthly fees.Will have to pay off your debt in full: Unlike with a debt settlement, you’ll have to pay off your full balance on a debt management plan.Tip: Under a debt management plan, you’ll make just one monthly payment — similar to debt consolidation. However, you won’t necessarily be able to get a lower interest rate.

If you have good credit and can qualify for a lower interest rate on a personal loan, consolidating your debt might be a better option if you’re looking to save money on your debt.

Just remember to consider how much a personal loan will cost you before you borrow so you can be prepared for any added expenses.

You can estimate how much you’ll pay for a loan using our personal loan calculator below.

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3. Choose a debt payoff strategy

If you have multiple cards to pay off, choosing a debt payoff strategy could be helpful. Here are a couple of methods to consider:

Use the debt avalanche method

Best if: You’re motivated by long-term interest savings.

With the debt avalanche method, you’ll focus on paying off your debt with the highest interest rate first.

Here’s how it works:

debt avalanche method

Pros

Could save money on interest: Paying down your highest-interest debt first could help you reduce your overall interest charges.Might get out of debt faster: Saving money on interest might help you pay off your debt ahead of schedule.

Cons

Could take longer to see results: While paying down your highest-interest debt might help you save money on interest, it could take a while to see any significant results.Might be hard to sustain motivation: If you need to enjoy small wins to maintain motivation, you might have a hard time sticking to the debt avalanche method.

Learn More: How to Consolidate Bills Into One Payment

Use the debt snowball method

Best if: You’re motivated by small wins.

If you choose the debt snowball method, you’ll concentrate on repaying your smallest debt first. Here’s how it works:

Pros

Faster results: You’ll likely see quicker results with the debt snowball method compared to the debt avalanche.Could help maintain motivation: Because you’ll be paying off balances sooner with the debt snowball, it could be easier to stay motivated.

Cons

Won’t save as much on interest: The debt snowball method generally doesn’t offer the same amount of interest savings as the debt avalanche.Could take longer: Because you won’t be saving much money on interest, it will likely take longer to fully repay your debt using the debt snowball method.

Check Out: Are Interest-Free Loans Really Interest-Free?

4. Reevaluate your current spending

Establishing a financial plan that prioritizes paying off debt could also help you tackle a $10,000 credit card balance. Here are a few strategies that could help:

Create (or update) your budget

Creating a budget is a good way to keep track of your income as well as your expenses. It can also help you plan for your financial goals — such as paying off your credit card debt.

To set up a budget focused on debt payoff:

Calculate your monthly income.Calculate your monthly expenses.Subtract your expenses from your income — this amount is what you can afford to put toward your debt.

Cut out the non-essentials

As you list out your monthly expenses, consider what you might be able to cut. For example, maybe you could unsubscribe from a streaming service you hardly use. Or you might start cooking at home to save money on dining out.

Tip: By reducing your spending, you’ll have more room in your budget to focus on paying off your credit card debt.

Sell your stuff

Many of us have unused items lying around the house that could be sold for extra cash. For example, you might consider selling electronics, furniture, or books.

Tip: If you don’t have anything to sell, you could consider purchasing items for cheap on a marketplace, upcycling them, and reselling for a profit.

Find a side hustle

After reviewing your budget, you might find that you don’t have much extra cash to put toward debt. In this case, you might think about starting a side hustle to earn more money.

For example, you could:

Drive for a ridesharing business, such as Uber or LyftDeliver food through DoorDash or UberEatsOffer freelance services, such as writing or consultingTutor local students

Frequently asked questions

Here are the answers to a few commonly asked questions about paying off credit card debt:

What is the monthly payment on a $10,000 loan?

The monthly payment on a $10,000 loan will depend on:

Interest rate: You’ll generally need good to excellent credit to qualify for the lowest available interest rates. The higher your interest rate, the more you’ll pay monthly as well as over the life of the loan.Repayment term: Personal loans typically come with a term ranging from one to seven years, depending on the lender. Choosing a longer term will likely get you a lower monthly payment — but it also means you’ll pay more in interest over time. It’s usually a good idea to choose the shortest term you can afford to keep your interest costs as low as possible.For example: Say you take out a $10,000 debt consolidation loan with a 10% interest rate and a five-year term. With these terms, you’d end up paying $323 a month with a total repayment cost of $11,616.

If you qualified for a 7% interest rate and chose a three-year term instead, you’d have a monthly payment of $309 and a total repayment cost of $11,115.

Is it smart to pay off one credit card with another?

You typically can’t use a credit card to make payments on another card. However, you can move your balance from one card to another with a balance transfer.

If you can qualify for a balance transfer card with a 0% APR introductory offer and can repay your balance before this period ends, then it could be a good way to save money on interest. But if you wouldn’t be able to pay off the card in time, you might be better off keeping your balances where they are.

How much credit card debt is OK to have?

Whether or not you have too much credit card debt depends on a couple of factors:

Monthly income: Having monthly debt payments that take up a large portion of your income can make debt unmanageable and saving for other goals impossible. It’s generally advised that monthly debt payments in total take up no more than 36% of your monthly income.Credit utilization: One of the major components of your credit score is your credit utilization ratio — the amount you owe on revolving credit lines (like credit cards) compared to your total credit limits. Using a high percentage of your available credit could have a negative impact on your credit. It’s typically a good idea to keep your credit utilization ratio under 30%.

If you decide to take out a personal loan to consolidate your credit card debt, remember to consider as many lenders as you can to find the right loan for you.

This is easy with Credible: You can compare your prequalified rates from multiple lenders in two minutes — without affecting your credit.

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