I’ve been taking a number of options into consideration lately regarding my debt.
I’ve been toying with the idea of taking out a personal loan to use to pay off one or some of my private student loans. I was recently sent some junk snail mail saying I was automatically approved for a personal loan of up to $25,000 with a 6.99% interest rate. It made me wonder what kind of loan amount/rate I could get with my credit union. I have pretty good credit but will my puny, part-time freelance income be enough to get approved without a co-signer? Could I ever consolidate my private student loans without a co-signer? Will Sallie Mae ever approve my co-signer release form? Something tells me my debt-to-income ratio is far too expanse.
I saw this CNN article this morning that says some banks are now offering refinancing private student loans. This is definitely worth looking in to. As it stands, my private loan interest rates range from 8.25%-9.75%. Even halving those rates would be nice!
I have had a US Bank credit card for several years that does not offer any rewards and has an APR of 16.99%.
I keep getting invitations from my credit union to sign up for a new credit card that offers a 0% introductory rate for a year on balance transfers, 9.49%-18% after that (depending on credit), no annual fee, 10,000 bonus points and various types of rewards (cash, gift cards, air fare). I have just under a $1,150 balance on my US Bank credit card. I don’t even use my US Bank cc anymore. A year of no interest to pay it off sounds tempting. It’s kind of funny that this offer is for the same credit card my husband recently acquired, without any incentives.
Have you ever done a balance transfer? Does it hurt your credit?
I’ll be making a trip to my credit union soon just to see what they have to offer but I remain skeptical that I’ll see any relief with my private loans. If the new credit card has a car rental insurance clause to it like my US Bank card, I may just do the balance transfer.