Know This Before Taking Personal Loan To Pay Off Credit Card Dues

February 09, 2018

Know This Before Taking Personal Loan To Pay Off Credit Card Dues

The outstanding amount of my credit cards are so high that making payments has been difficult. What’s the best thing to do with minimal damage to my credit score? Should I take a personal loan to pay off credit card dues ?

 

Having too many credit cards has made a problem for you. Your credit card bills are just sitting there on the counter glaring at you. You’ve been ignoring them for several months now and your total debt just keeps growing. 

Making timely payment is the most important factor in your creditworthiness. Making less than the minimum payment due will likely result in the account being reported as past due on your credit report, which will negatively impact your credit scores.

Before you apply for a personal loan to pay off credit card dues, there are few things you need to know.

What You Should Consider Before Taking Personal Loan To Pay Off Credit Card Dues

 

Image result for credit score icon png Your Credit Score Determine Your Eligibility

With no collateral, all the lender has to go on is your personal creditworthiness. You can expect the available interest rates to increase steeply if your credit is average or poor when you apply for personal loan to pay off credit card dues. Even if you are later able to service the present loan successfully, your ability to access loans at a future date may be severely curtailed as your credit history would reflect the previous defaults. A clean credit history can also help in negotiating cheaper interest rates later.

Image result for bank overdraft icon png You Can Ask Your Bank To Grant Overdraft Facilities

You can avail the facility of overdraft, if you have an account with the bank and especially if the loan amount applied is not very large. Banks generally offer their worthy account holders an overdraft facility which may again be lighter on your finance than a personal loan.

 

Personal Loan To Pay Off Credit Card  Search For The Best Loan Deal 

This refers to applying for a loan with the lowest interest rate.  If you would like to pay EMI on personal loans for a longer duration, then opt for a loan which gives you the flexibility to pay in that manner. Hence; browse around to get the best deals on your personal loan. There are literally lot of personal loan providers offering attractive offers to lure customers.

 

Image result for alternative icon pngThink Of Other Alternatives Of To Pay Off Your Credit Card Dues

 While there will be temptation to seek bank loan for paying off credit card payments hence; accessing personal loans to fulfill such desires can mess up your finances since you will add another repayment component that would go out of your monthly salary.

 

Image result for consequence icon png   Consequences Of Not Being Able To Repay Loan On Time 

Getting into “Loan default” category can have serious consequences. Being aware of the consequences can itself make you a disciplined borrower and help you work within your means. Not able to repay the loan can impact your CIBIL score also; prevents you from borrowing in future.

 

Image result for competitive rate of interest icon png  Competitive Interest Rates

As personal loans to pay off credit card dues are unsecured loans therefore; carry higher rate of interest. This is because you need not keep any asset as collateral. Hence; the nature of this loan also makes it that much more difficult to obtain as compared to getting a secured loan disbursed into your account. Browse around for best rate of interest moreover; you may either apply for a fixed rate or a variable rate when it comes to choosing the type of loan.

 

Related image  You Can Negotiate For The Best Rate

Banks as well as private financial lenders are always competing among themselves for lending to the borrowers. So negotiate hard to get a better rate on your loan application. Remember this, even a fraction of a percentage could mean a considerable reduction in your repayment amount.

 

Image result for read contract icon png  Read Your Loan Agreement Carefully

You should always read the loan document in its entirety, including the fine print to know all the charges, fees and penalties for non repayment. This will help you not to be caught off-guard later. Do not rely blindly on the bank relationship manager who might not make you aware of some important details.

 

 

imagesource

February 09, 2018

Connect with Service Provider

Get connected within 24 hours to pre-screened, trustworthy and small business friendly service providers for Services in top Indian cities

Latest Posts

Top 7 Whiteboard Explainer Video Tips That Talks About Your Business

December 01, 2018

Whiteboard animation videos !! The video style has been trending for obvious reasons. The whiteboard animated videos are known for boosting

Read More  
Facebook Ads | Top 6 Reasons Why Your FB Ads Are Not Converting

November 29, 2018

There were only 3 million active users on Facebook 4 years before; and as of 2018 there are more than

Read More  
Top Facebook Boost Post Tips - Get Results and Generate More Leads

November 13, 2018

Majority of the online marketers who wish to advertise on Facebook and get more leads using Facebook boost posts will

Read More  
Why Should Your Business Hire Explainer Video Company Instead Of Freelancers?

November 10, 2018

We all know the benefits that having a website can help you trigger brand awarenes; overhauling your public image virtually

Read More  
Animation Video Maker | Promote Your Brand With Our Corporate Videos

November 03, 2018

Whether you’re a beginner or already an established brand, SME Networks is an expert Animation Video Maker company that

Read More  
Facebook Ads | Top 7 Effective Tips To Write Facebook Ads That Convert

November 01, 2018

I’m constantly on Facebook, scrolling through my company feed reading the news and looking at pics…I’m not

Read More  

Latest Events

CLO Engage Summit

Date: 10 January, 2019 - 10 January, 2019

India Investment Conclave

Date: 11 January, 2019 - 11 January, 2019

11th Global Intellectual Property Convention

Date: 17 January, 2019 - 19 January, 2019

PanIIT Conclave 2019 Artificial Intelligence

Date: 18 January, 2019 - 19 January, 2019

Mobile And Digital Marketing Summit

Date: 27 November, 2018 - 27 November, 2018

Emerging HR Summit

Date: 18 December, 2018 - 19 December, 2018

PITS - Pharma IT Summit

Date: 28 November, 2018 - 28 November, 2018

World AI Show - AI, MI & Robotics

Date: 22 November, 2018 - 22 November, 2018

TEDx IIFT Delhi

Date: 21 October, 2018 - 21 October, 2018

Decathlon India Run

Date: 14 October, 2018 - 14 October, 2018

One thought on “Know This Before Taking Personal Loan To Pay Off Credit Card Dues”

  1. I want a loan but I am from Kolkata and it’s. It showing options of this city

Comments are closed.

-->