Taking a Personal Loan to Pay Off Credit Card Debts


#1

If you are carrying balance on your credit card, you may have to pay a huge interest on it each month. When you feel that your credit card issuer is charging you with high interest rates, then one of the best options to pay off your debts is by opting for a personal loan.

The reason behind paying off credit card debts through personal loan is because of its lower interest rates. If your credit card interest rate is higher than your personal loan interest rate then you’ll save significant amount of money with the loan. But if the interest rate on your personal loan is higher than your credit card rates, then you won’t save any money. However, there’s still another reason to consider the personal loan, which is your credit scores.

A personal loan is considered to be a systematic financial tool, since you’ll have a fixed loan amount and fixed payments over a fixed period of time. Whereas a credit card is a revolving account, which means the balance and repayment fee structure can fluctuate month to month.

A personal loan is an installment debt, which has lesser effect on your credit scores, while the credit card debts can ruin it! When you pay off credit cards with personal loans you’re converting revolving debt to installment debt. And, doing so will likely cause your credit scores to go up. Hence taking a personal loan to pay off your credit card debts is a viable option!


#2

rest


#3

this is a replu


#4

this is a great day


#5

test


#6

reply


#7

nice


#8

thanks


#9

Hi MKumar,

Thanks for educating us on using a Personal Loan to pay off Credit Card dues. Even though it is wise to use a low interest rate Personal Loan to pay off Credit Card dues (charged with high interest), it is important to keep a few points in mind. First, it is essential that you calculate the total cost of the Personal Loan before choosing one. This is because prepayment charges, foreclosure charges and processing fees could result in a very high cost loan. In an instance such as this, it would make little sense to take a Personal Loan to pay off your Credit Card dues. Secondly, check whether you can convert your Credit Card dues into EMIs before opting for a Personal Loan. Those EMIs could be more affordable than Personal Loan EMIs. Some banks even provide better interest terms if you pay off your dues through EMIs. So, keep these points in mind before opting for a Personal Loan. If you’re looking for a Personal Loan yourself click here.

Cheers,
BB Expert


#10

You can grow your savings by:
a) Investing in Home, Land, Gold, etc. that will reap you more returns in future.
b) Opening a short/long term investment - PPF, Mutual Funds, FD/RD, SIP, etc. These offer tax saving benefits as well.
Utkarsh Small Finance Bank offers higher interest rates.


#11

Parchonal loan sending icic bank
Received ab bank Ltd
Ac 4045761364000