Putting big purchases on a credit card can be really risky, especially if you don’t have the cash to immediately pay it off.
Most credit cards come with high-interest rates (currently, the average is just over 17%* — yikes! ) and you will get charged that interest if you don’t pay your balance in full every month. Credit card interest compounds daily, meaning that your balance will collect interest for every day it goes unpaid (yes, every day). And we all know the cycle of debt can be crippling — we don’t need to tell you that.
When looking to make a large purchase, you should always start saving as soon and as much as possible so you can cover the cost on your own without needing to borrow money. But if you can’t afford to front the cost entirely by yourself, there are other options to consider like getting a low-interest personal loan. Instead of paying back a lump sum all at once in a short period of time, you’ll be making smaller, fixed monthly payments. And you are likely going to save a lot on interest this way.
Here are the top three places we recommend looking into:
1. Fiona: Personal Loans With Great Rates For People With Good Credit
Got a home improvement or a small business project that’s going to cost a couple of grand more than you can spare? Fiona should be your first stop: It’s one of the most popular ways people shop for personal loans. That’s because when you use this online marketplace, you can get matched with, apply and get approved for a loan all in the same day.
It’s really simple. All you have to do is fill out a short form and submit it. Within seconds, Fiona will provide you with a list of offers from the top lenders you prequalify for based on your answers. It will even point out the offer it believes best fits your needs and situation. Select the offer you like best and apply for it directly through Fiona. Because these are offers you’re already prequalify for, you’ll get your approval and access to your funds right away.
You can borrow up to $100,000, with fixed annual pay rates (APR) starting as low as 4.99%. If you have a good, great or an excellent credit score Fiona is definitely for you. And the better your credit score, the better your chance of securing a loan with a lower rate.
Fiona is a free service and you don’t have to worry about it impacting your credit score in any way.
2. Credible: Get Real Rates, Not Estimates, Instantly
Getting blindsided by an unexpected expense like a medical emergency or car repairs can really put a strain on your finances. When your emergency fund can’t cover it all, Credible can help you get the money you need quickly.
Just take two minutes to answer a couple of questions about yourself and what you need the loan for and almost instantly you’ll get a list of personalized rates from up to 11 thoroughly vetted lenders. To make the whole loan rate comparison and application process easier and more straightforward, Credible provides real rates based on your credit history, not estimates. Apply for the loan with the best terms for you directly via Credible.
Credible offers personal loans ranging from $1,000 to $50,000, with APRs starting at 4.99%,
Using Credible won’t cost you a penny or hurt your credit score so you can search and apply for loans without having to worry about it.
3. SuperMoney: Loans For People With A Wide Range Of Credit Scores
As wonderful as getting married or moving for a new job are, big life events can have some pretty hefty price tags that can be hard to pay for on your own. If you’re struggling to come up with the money you need, SuperMoney’s got you covered.
This free online search tool will do all of the loan comparison shopping — which would usually take hours to do — in seconds for you. Fill out just a single pre-qualification form with SuperMoney and it will give you a lineup of competitive loan options from its lending partners. Compare rates, terms and payment options side-by-side in one place. When you’ve decided on the one that works best for you, click apply and fill out it through the lender.
Rates start at 4.99% and you can borrow as much as $100,000. SuperMoney’s partners work with borrowers with a range of credit scores, so you’ll definitely find an option that suits your needs, even if your credit score isn’t perfect. Using this service also won’t harm your credit score.
Bonus: Get Rid Of Credit Card Debt Once And For All With This Easy Hack
If you’ve already packed on the credit card debt and are kicking yourself, don’t, there are millions of Americans in the same spot as you.
Now, what to do about it. A great way to pay off your credit card debt faster is to use whatever money you can spare to make extra payments towards it. Download the app Digit and it will automate that process for you, meaning less work (and headaches) for you.
Once you connect Digit to your bank account, it learns your spending habits and income to help you put a little bit of money away every few days (in little increments do you won’t even miss the cash). Digit will then use that money to automatically make additional monthly payments to your credit card company for you. Really, any little bit helps, and you’ll be saving money on interest.
Feature Image: Twenty20