Consolidating debt car loans
“We sat down with them and when we explained that they would be paying for their purchases on their credit card or for their car for the next 30 years, they soon realised that this wasn’t the best way to structure their finances! Get your salary paid into the account to establish a transaction history. This won’t guarantee approval on your application but, it will help us understand your financial position better. Set up a regular savings plan Show you can afford to service a loan by saving a set amount regularly (every week or month).All three have reasonable APRs, fixed interest rates, and multiple options for loan amounts and payoff periods — exactly what you want in a lender.But each caters to a different credit score range: Prosper, an online marketplace lender, is right in the middle with a credit score cutoff at 640; Avant is willing to go as low as 580; and the average So Fi borrower has a credit score of 700.
WARNING: This comparison rate applies only to the example or examples given.
For example, if you purchase a car you might structure the financing over five years, because at the end of the five years you may consider selling the car.” If you were to structure the financing for your car over 30 years, it means that if you sell the car in five years time, you’ll actually end up holding onto the debt for an additional 25 years – which dramatically increases the overall interest you’re paying for the car.
“We recently had a client that came to us wanting to refinance their existing home loan, and they were looking to consolidate a credit card debt of ,500 and a car loan of ,000 at the same time,” Bartels says.
“You should start with the idea that the last thing you should do is borrow money to fix your problem,” says Bill Dallas, co-founder and CEO of Cloudvirga.
But he concedes that it sometimes makes a lot of sense, especially if you’re swamped with high-interest payments and can swing a better rate with a loan.